India, in contrast, shunned its diaspora. Mirroring this policy vacuum, Indian companies have generally not benefited nearly as much as Chinese companies have,' says Khanna in his analysis.

Speaking at the release of the study organised by the Confederation of Indian Industry (CII) here, Khanna also said Indian bureaucrats and politicians were indifferent when it came to reaching out to the diaspora to channel investments from Indians back to their home country.

'I have had several high-ranking Chinese officials seeking help in establishing contact with Chinese individuals overseas. But I never saw a single Indian official doing so,' said Khanna.

The study also points to another major weakness of Indian firms: Lack of collaboration between them.

'Consider the retailing industry. India woefully lacks formal retailing and wholesale infrastructure, relying instead on unorganised channels. Industry participants could come together to share infrastructure,' said Khanna.