Manufacturing Futures (Business Standard)

From the article:

Can India be a manufacturing powerhouse? Three developments make that question salient today. Looming ahead is the demographic bulge, which will disgorge a million young people every month into the economy in search of employment opportunities. Rising labour costs in China create opportunities for low-skilled countries such as India as replacement destinations for investment that is leaving China. And a new government assuming power later this month offers the prospect of refashioning India in the image of Gujarat, which has been one of the few manufacturing successes.

Manufacturing is an important sector into which resources should flow for two reasons: the level of productivity and its dynamism. If this were to happen, the economy would become more productive through a reallocation of resources from less productive to more productive sectors and also because productive sectors would become more so over time.

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