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Indias service businesses have thrived because they have capitalised on India's strengths—computer skills, fluency in English—and are not hostage to its weaknesses. Yet those weaknesses are all too obvious, and are the reason why India on many counts still lags behind its neighbour-rival, China. India has lousy infrastructure, bumbling and burdensome regulation and restrictive labour laws. And economic reform now appears to have stalled in political recriminations.