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India's path to overtake China hinges on tighter contract enforcement

With backlog of 50m disputes, modernizing rule of law key to attracting more investment

Mumbai's financial district. India overtook the U.K. last year to become the world's fifth-largest economy.   © Reuters

TOKYO -- As China tightens controls on the private sector, companies and investors worldwide increasingly see India as an alternative investment destination.

India overtook the U.K., its former colonial ruler, last year to become the world's fifth-largest economy, and is maintaining its rapid growth. However, weak rule of law and other structural issues stand in the way of it reaching its full potential.

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