I personally don't feel that India can compete with China anytime soon. I have my own reasons to believe in this. Let me highlight a couple or more of them.
1) India liberalised its economy in 1991 and China did it after 1995, and that too not entirely as it is still reeling under communism. China became a very hardcore player and started undertaking aggressive strategies to attract the world towards it. India, on the other hand, just freed the economy and sat back. The laid back attitude of the industries and people in India added to the already existing lethargy.
2) Even under communism, China continued to grow at a very amazing speed whereas India enjoyed a steady growth rate. The bureaucracy and the political environment in India is what hampered the overall growth of India.
3) In China, people either do or die. In India, we have options of doing, enjoying, resting (more than necessary) etc etc..but we don't have the do or die attitude. Just take a look at our new 11th year plan for the economy and most of you will understand what I am saying. Did you know that we have made money amounting to almost Rs. 19000 Crores from Special Economic Zones (SEZ's), but have invested and lost more than Rs. 90,000 Crores in these SEZ's by giving them tax benefits and illogical leverages.
Once we get more strict and stringent with our policies and cut down the bureaucracy in India, we can "think" of at least arriving at the stage where China is right now. However, I don't see this happening anytime at least in the next 5 years!!!