DMPQ: Why manufacturing sector in India failed to realise its potential?

Major reasons are:

  1. Low capital investment in infrastructure.
  2. Rising NPA after financial crisis and Twin balance sheet problem.
  3. Opening up of economy in 1991 had make us vulnerable as manufacturing country. We did capitalise on service sector.
  4. Labour laws skewed in favour of non-setting up of manufacturing units.
  5. Low investment in Research and development sector.
  6. Non availability of skilled labour force.
  7. Enforcement of contract and complexity in labour laws is a complex issue.
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