India's government, judiciary and bureaucracy are pretty good by comparison with other countries in the same income range or region.

The government also put money into education (more than was needed according to assorted "experts") which has enabled the boom in service exports.

I would also question how efficient China's government is given the high level of corruption, and its inability to enforce important regulations (like not putting melamine in milk...). Maybe the Chinese government is just good at convincing people it is efficient because it suppresses all reporting that suggests other wise.