And the caste aspect doesn't make sense, as caste is hyperlocal and there isn't solidarity between caste groups of different ethnicities. Furthermore, caste ranking doesn't fully translate to business ownership, as traditionally, merchant and moneylending castes like Banias were towards the lower end.
The main difference between China and India is China makes it's urban centers de facto independent of rural hinterlands within the same prefecture, while in India, urban and rural are both under the same state government.