Are Indian companies climbing up the value chain??

We are simply harping on other's weak moments. Every activity has to undergo a high and low in their activity cycle. It is Lean phase of developing economies that we are celebrating. If it was for our own research and development, broad spectrum and long sightedness it would be lasting and for real. As of now it is only for a minuscule section of the country and may not last. 

There might be some foreign mergers and acquisitions. Still overall, the picture is quite bleak. The standard of R&D in Indian companies is very low as compared to the Western counterparts. This is due to obvious reasons, R&D is a very costly affair. Without high quality R&D we cannot expect to climb up the value chain to the point where we become inventors instead of "manufacturers"  and  "car makers" instead of "mechanics."

As I have been associated with the software sector, I can say with confidence that it still has a long, long way to go. The quality of manpower that can innovate and implement new ideas (not "borrowed / copied" ones) is yet to evolve. We are stuck in a low position in the overall value chain.