India has long been an economy too dependent upon services and the consumer. Manufacturing has been a weak part of the economic equation. For India to grow longer term, and bring its hundreds of millions of poor into the middle class, it must follow the example of China and increase the manufacturing component of the economic mix.
There is hope that such a trend is developing.
The May 22, 2008 Financial Times stated that "India is on track to meet its target to increase greatly the role of manufacturing in spite of global economic turmoil according to Ashwani Kumar, minister of state for commence and industry...the Indian government plans to push manufacturing production to more than 25 % of the overall economy by 2017 from 16-17% now."
In order to do this, India must improve its infrastructure and create special economic zones. If this can be done, India will have a good opportunity to become a first class power.
In our opinion, if the apologists for statism, corruption, and political gridlock within India continue to exert influence, India will not make the necessary progress to gain a position in the front rank of global economic powers.
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