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

Though Many reasons can be presented for the current scenario like bank rates hike, high duties, poor or no policy reforms etc. , by the industrialists, the main reason why couldn we shine in secondary sector than tertiary, is poor infrastructure, a part of investment. As known by all investment for an IT or BPO company is not so big as for a manufacturing plant. That is why we have seen service takes a huge part in the GDP pie, with good performing financial institutions. The need for the hour is more investment in R&D. Government if couldn't afford to invest more can seek the foriegn aid through FDI. For a country like India where we have the large human resource with enthusiastic youth seeking an arena to learn more, it's no harm to allow FDI to improve infrastructure, just like how China improved it's trade. If there are more jobs in Industrial sector with an ambience to learn and increase the competency level of the employees, no Indian will prefer the BPO's that provide no option to excel.

1). Most of the money in India is blocked as black money by tax evaders.

2). Money is not properly circulated throughout the country and those peoples are interested to invest money in industrial sectors.

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 mind and energy one should spend in job, is lost in getting a job. Along with mark of harsh realities of Indian recruitment process on their minds people become incompetent and inactive in organizations. Every one wants to save himself and want promotion on others' hard work, many private organizations are just exploiting their workforce and their employees keep their mouth shut as we have many unskilled, skilled people for substituting them, Indian businessmen don't want to grow by technology.

They want to grow by exploitation, exploited work force means less purchasing power which means lesser production and massive job cuts which goes on till economy comes to total HALT, then REVOLUTION occurs, since freedom and happiness have to be replenished by wars and blood, to wash away the FILTH and introduce new fit individuals and ideas for creating a new and better SYSTEM.

Indian all over the are know for their communication and it skills and thus we established ourselves as one of the it giants. When it comes to manufacturing skill we are not up to the mark. Our markets are flooded by MNCs which have hindered the development of local industries for ex sports market is dominated by addidas, reebook, nike. Local industries stand way behind when compared to quality and investment which these bigwigs have and thus our manufacturing skills are not up to the mark at the globally level.

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.

Lack of initiative & investment in the manufacturing sector and also thinking from the point of view of common man, I think every one today is interested in doing a desk-job that is more luxurious rather than doing hard work in a manufacturing industry.

I think in India there is lot of corruption. In addition to this Indian people are not interested for making new things. They don't want any risk in their work. Peoples want more money with less effort. But they don't know that there is no short cut to success.

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.

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.