How can India become a manufacturing hub?

Special economic zones can help India become a global manufacturing hub and the government should provide hassle-free regulatory and fiscal environment to entrepreneurs. India must aim to become a global manufacturing hub. Government policies must support this and tax policy must incentivise this. More so since the myriad hassles to set up and do business in India are a big disincentive.

No one can stop India becoming a manufacturing hub in THE WORLD.What it needs to look in is its bureaucratic rambling which is the only stumbling block.The labor force which is not only cheap but it has a highest degree of endurance and faithfulness that is what the manufacturing units vie for.

If India issues a new foreign investments policy and opens opportunity for more and more countries to invest in Indian markets and set up their manufacturing sectors, the FDI (Foreign direct investment) in our country will increase and very soon we will become an international manufacturing hub

I think the automobile industry has flourished in India more because of the talented engineers who have taken to the industry. After all incentives and manufacturing were present in India even in the 90s , but it is only in the last 7 or 8 years that foreign auto makers have flocked to this country. After the Nano , and with Indian sponsors taking to Formula 1 , the world recognizes that India has the talent to make this industry flourish here.

Similarly in the field of electronics and semiconductors , Moser Baer is already a world giant ; Texas Industries has a design centre in the south. I think if the government and colleges together promote design as a promising field , like it happened in the 90s with software , then manufacturing will follow.

To become a manufacturing hub, India needs to do amongst other things, the following

1. Overall improvements in infrastructure - roads, power, transport - to global standards.

2. Taxation should be made globally competitive to attract such outsourced manufacturing

3. A drastic improvement in quality of manufactured goods in the country to make them competitive with chinese and japanese particularly.

4. A sense of pride in things made indian!

5. The ability to attract, select and retain talent which is most suited fror the job regardless of nationality race or gender.

6. A transparent governance and management policy that enforces confidence in those who wish to come and invest in a manufacturing hub in india.

Yes it is not only the internal factors but the external factors which are responsible in India not becoming a manufacturing hub. The talent is not in the short supply. The technology is there. The potential for the growth is also there. Simply because the Chinese Yuan is not competitive that is why their costing is coming lesser than us which is resulting in projects going to China. But that doesn't mean we don't stand a chance. We can still compete and win. For that we will have to look at sectors in which we are more competitive and give them a push so to say. Which will result in projects coming to India. Which in turn will result in India becoming a manufacturing hub.