Why can't India be a World-Class Player in Manufacturing Industry as it is in IT & BPO Sectors?

One problem that the manufacturers are presently facing in many sectors is the problem of inverted duty structure.

Under the inverted duty structure, finished goods are taxed at a lower rate than input components. Hence, the higher rate of excise duty on inputs and lower duty on finished goods leads to accumulation of Cenvat Credit which ultimately results as a cost to the manufacturers.

The imported raw material users in a range of manufacturing industry segments are in a spot due to inverted customs duty structure that makes them uncompetitive against cheaper finished product imports and discourages domestic value addition.

I agree with that India has surplus manpower and infrastructure, but in addition with that is we are lagging way behind in R&D than other countries. We never spend capital in R&D, rather India follows the trend of expanding fund on buying technologies and MARKETING them according to their targeted consumers. And Also we don't have any platform where our manpower and resources can perform and be efficient.

If we talk about solution, BIG GIANTS like tata, rel and Govt of India should invest more in R& D sector, then automatically manufacturing sector will get boost.

Apart from Political will here few things that I want to mention.

Not even 4 % of the population is working IT and Service sector, So it is not the entire India is into IT and Service sector.

Go to rural place, people migrate to work as Day labors in Cities.

People are in fear of starting something new, or introducing new products, or designing new for upcoming working class.

People are always telling their kids (hypnosis) to study well to get good job.

So they think they were born for modern day slavery.

After school and college hardly 2 % study a book or read some important self help article. And those 2 % are those who work in IT or Service sector.

People who want to do something (such as business or inventing) are discouraged by saying you do not have money and so on.

If there is will there will be a way.

People should help other people in rural and smaller cities to start motivating entire India, we will be the youngest Nation (by population) by the year 2060, we can become a wealthier nation and overthrow US economy before 2030.

I feel the basic reason behind this lies in the fact on the quality of education which we get, we are following same education system from post independence and this was designed by Britishers who just wanted us to do clerical works for them, so they emphasized on theoretical education which we still follow, right. Till class 10 we had very less or no practical approach to our studies and in many ways in even after.

What we lack is quality technical institutes, yes we do have some of these, but can be counted on fingers when compared to what we actually need.

Like one of my friend said (above) countries like japan, Singapore are doing well despite of their low natural resource, India having enough of it is lacking behind as it is efficient personnel's to utilize them.

In my point though India has more manufacturer compared to other countries, there is lack of electricity for the domestic supply itself. I think this is also one of the reason that we can't be the world class in manufacturing.

Actually the main problem is that in manufacturing industries we need a lot of investment and lot of technology for proper working and to compete with the world player and your government is not so serious in investing money in industries.

After analysing the points given above, in my opinion it takes time to develope any sector and same case with manufacturing sector. It is not so we do not have skilled worker or a labourforce but thing is that first we have developed our agriculture sectore then we moved to manufacturing sector and without completing it we moved to service sector. Indias does not have sufficient infrastructure to develope their manufacturing.

According to me, Indian are too lazy so they want a job which gives them comfort hence in BPO and it companies there is no more field work in comparison with manufacturing therefore India is lacking.

The secondary sector (manufacturing industry) in India is slow in race compared to primary and tertiary sectors.

The reasons are the same which are mentioned by the other members.

But why can't India learn from china which is presently the largest manufacturer in the world.

Going back to the 1975 and 1980's the industrial sector in both the counties are more over the same. But from 80's the china showed a rapid growth in the industrial sector surpassing the world majors like USA and Japan.

If a country like china which shares a lot common problems could make it, then India should at least try to achieve at least half of the its industrial growth.

And surely the government should provide a helping hand.

The main reason behind India not being a major player in manufacturing industry is because of less capable and unskilled worker. Manufacturing industry requires highly skilled worker as compared to IT and BPO sector. Another striking hurdle is that India do not have enough sophisticated infrastructure which is an integral part for a manufacturing industry. Indian citizen are happy to work with low labor intensive job with a descent salary as compared to high intensive labor work in manufacturing industry with low salary.

And the last player for IT and BPO sector winning the race is because of many MNCs supporting the IT industry whereas resources required for manufacturing industry is in control of government which has always been a sloggy player for Indian development.