Although both China and India are both developing countries that does that mean that the most developed is the best country to expand to. Let's take a close look at both countries.
China
Currently China hosts a population of 1.35 billion at a growth of 0.47 and a GDP of $5,878 and growth of 10.3, which marks the economic distance to be low (Good indicator) compared that of US GDP of 14,582. The Ease of doing business is 79th in the World as it has a fast acting Government that helps support the quickly developing country. The infrastructure is superior, trading across border ranked 50 (Above average in the world), and geographic distance to U.S. is moderate. They provide better access to consumers especially the wealthy that are located in the East Cost. Intellectual property security is high and corruption perception index is low ranked at 33rd (Low corruption), and Enforcing contracts is superior. This is all due to the countries quick and general enforcement of laws and trials. It has one of the largest R&D (Research and Development) in the world (Estimated at 1,000) making it a country of innovation. They are also known for their extensive and efficient manufacturing.
The disadvantages are that the culture distance is high, western culture is not fully accepted, population growth rate is declining currently at 0.47, demographics shows an old population, which means a decrease in productivity and decrease in the market segment, and political stability has been decreasing (Current score is a 4.8).
In all, China has a bright future but indicators show an eventual slow down in their economy based on their demographics.
India
Currently India hosts a population of 1.2 billion at a growth of 1.41 and a GDP of $1,729 and growth of 10.365, which marks the economic distance to be moderate (medium indicator) compared that of US GDP of 14,582. The Ease of Doing Business ranked 134 in the World and is the reason of for most of their disadvantages, which will be explained why this is. The infrastructure is moderate, population growth is large, trading across the border is ranked 100 (Average in the world), and geographic distance to U.S. is moderate. Culture Distance is low due to Western influence based on British colonization early in the century (English speaking and similar democratic government setup). Huge growing middle class shows a diamond shape instead of pyramid Shape in wealth in the next 5 years. Demographics show a young population peaking in 10 years, showing great productivity in the next 20 years. As a result, growth in India is much more sustainable and promising. There is also an immense talent in India as Bill Gates articulated on "Human and Intellectual Capital". In other words, there is low cost and educated labor force available in India. Other advantages are a democratic government, getting credit is very good, protecting investors is very good, high end (R&D) Research and Development at low cost (Estimated at 800) making it place for innovation. Rural access to consumers and India's wealthiest cities are spread around the country (Hard access but could reduce competitors). Finally, political stability is at a 4.5 Score, but every since 2001 most countries corruption score has risen but India along with a few other countries have remained stable.
The disadvantages in moderate infrastructure provide issues in connecting to rural consumers and transporting to the major cities that are spread around the country, as a result will prove to be time-consuming and costly. Intellectual property is not enforced making it a heaven for stealing. Democratic Government is slow in making changes, which is the major reason why Ease of Doing business is moderate to low and leads to the slow development of the country. Corruption perception index is ranked 87th making it a moderate country compared to the world. They are the worst when it comes to dealing with construction permits and enforcing contracts. That is due to Indian's Culture on how they carry out contracts, which is more reserved to promises and open discussion to changes along the way. In many ways, it's considered a disadvantage to many countries but to Indian's it's considered an advantage for both sides to be able to equally and fairly balance profits and risks along the way.
In all, India also has a bright future because of their growing GDP, labor force, and population. They certainly have the ability to pass China in the next 20 years but their Ease of doing business and the government's democratic ways could lead to a giant's stunted growth.
In Conclusion, both countries have their points but what will mark the difference in going to China or India will be based on your businesses Strategic Importance and the particular Industry interest growth rate in each country.
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