India has achieved a lot in terms of IT outsourcing and now it wants to become China in the area of manufacturing outsourcing. It wants to generate employment for millions of unemployed in the country through the manufacturing sector and for that purpose it is looking forward to attract capital in this regard.
By 2008 it is expected that FDI in India would reach $10 billion but this would be aimed at low capital manufacturing for the domestic market as compared to a trend in China where the production is exported. As of now India is still a base for domestic production rather than for manufacturing outsourcing.
One of the major reasons India is still backward in this sector is that it lacks proper infrastructure and this drives away manufacturers. It won’t be an easy journey for India as manufacturers would still continue to prefer China due to its strong base in manufacturing.
