Friday, September 01, 2006

India: The Next Industrial Giant ?

IHT has an interesting article (by Keith Bradsher) about India's emerging manufacturing sector as a global force. As to be expected, there is lot of comparison with China and in particular about working standards, cost and the market.

The net of the article is that India's growing Industrial Sector is going to be engine for accelerated growth in India, however, it has to overcome many obstacles if it were to become a global force.

This is where Keith ended the article and will continue tomorrow with 'Obstacles to growth'. Let us help him with the article.. What do you think are the obstacles to growth in India? Here is my five (obvious ones...):

  1. Infrastructure - India needs more roads, ports, power, water.. you get the drift.
  2. Corruption - This is a terminal cancer and needs to eradicated / contained
  3. license Raj - There is still too much bureaucracy.. that needs to be simplified
  4. Labor Laws - They are archaic and badly in need of revision
  5. Terrorism & War - Another war will put India back by several years.