Basic Principles for National Manufacturing Sector Policy

Basic Principles
Manufacturing has been the backbone of all developed and developing nations.
It is where R&D starts, where new technologies are born, where scientists and engineers and others are challenged to develop new and better processes, products and technologies.
Manufacturing is called the Old Economy or the Real Economy.
Manufacturing takes an important position in most fast moving economies of the world, with a share of between 30 to 50 % of the Economy. In India it accounts for nearly 75% of Government revenues but only 25% of the GDP!
If we compare India with countries in Asia, such as Thailand, Indonesia, Malaysia, Singapore, Hong Kong, Taiwan, Philippines, Korea and China, one will find, that most of them have economies driven by manufacturing, which is 30 to 50 % of GDP. India is lagging behind with 22-25% of GDP, in this sector.
China's manufacturing is nearly 50% of GDP, at about $ 650 billion per year, nearly 6 times the size of India's Manufacturing Sector, which stands at about $100 to $110 billion per year.
India's manufacturing is only 22-25% of the GDP, which is about $ 100 to $ 110 billion out of a GDP of $440 billion
Manufacturing provides many jobs, at all levels. It is important as an employment generator.
Because of unfriendly employee and labor policies, and reservations in the SSI sector, India has missed the bus, so far, in manufacturing.
The present conditions do not promote manufacturing in India, especially for high labor intensive technologies. Other Asian countries have taken advantage of our short comings and taken away a lot of International business, which would normally have come to India.
It is only in the last few years, that it is now beginning to dawn on our leaders and planners that a lot of manufacturing could be located in India. After seeing the spectacular rise of manufacturing in all the Asian countries, during the last 25 years.
With the opening up of global trade and imports into India, in the last few years, a lot of manufactured goods have finally hit the Indian markets, bringing in world class manufactured goods at international prices. It has also brought in many opportunities for Indian manufacturers, as they can now bench mark Indian goods against the best available in other parts of the world.
Many Indian companies have already started exports of Indian manufactured products for world markets. Many will become Global players.
Many foreign firms are finally realizing that India is about the right place to look at global manufacturing for out sourcing for world markets.
All the above could get a big boost provided conditions, as mentioned in the policy, could be implemented