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.

1 comment:

  1. "Selviya, Kalviya, Veerama" song comes to mind talking about infra-structure. We had terrible brain drain in the sixties, seventies and eighties. We were able to stop that brain drain by providing opportunities locally in India itself. To go to the next step in the development, India has to concentrate on road, water and electricity development in the next 10 years if that means creating new planned cities and capitals throughout India for each state; let that be done.

    Corruption,nepotism, redtapism should be replaced by honest earning, merit and action. Can this be done? only Karthi kind of professionals in politics can answer that.

    With the exception of exclusive monopoly in strategic areas such as electricity, water, and defence,
    I thought India has open general licensing procedure for set up of industries. So do I think they have open general licensing procedure for import of capital and consumer goods. Is it not true?

    War and Terrorism cannot be wiped off altogether so long we have fanatical Pakistan on one side and communist China on the other side supported by Imperialistic countries who have no principle of alignment other than opportunity to sell their arms.