Earlier quoted context omitted.
I think you unscientific impression is leading you astray. India has its share of problems, and it has its share of corrupt politicians. But it also has a pretty robust democracy and part of what returnees are bringing home is an appreciation for governments that work vs ones that don't. And when the people don't tolerate an ineffective government they change it. The other thing India is, is big. There is a lot of co…
Do you mean a threat to China's status as leading economic power, or a threat to China? Improvements in productivity help all of us, because we make more stuff to share around; it is not a zero sum game.
From an economic standpoint they may be able to put together cost competitive manufacturing facilities with a better quality of life for their workers. That, coupled with the increasingly forceful way in which China struggles to maintain its margins are threatening the delicate balance in China between the benefit of hard currency and the challenge of an upwardly mobile workforce. (or not which would turn out to be the problem)
As more companies are put under pressure to avoid doing business with companies like FoxConn and the ability to keep information about working conditions in China out of the press is reduced. It makes for a challenging environment for the Chinese. To have a neighbor state pick up the slack with workers who, if they are successful can move on to big houses and a more affluent lifestyle, and are thus both happier and more productive in their jobs. That is the threat economically.
If India were to provide a ready market for Afghanistan's raw mineral wealth, that too could be problematic for the Chinese.