By Anant Vijay Kala
- Deshakalyan Chowdhury/Agence France-Presse/Getty Images
- Tata Motors changed its plans to set up a manufacturing facility in West Bengal amid political as well as farmer protests. Above, the unfinished plant.
India Prime Minister Manmohan Singh has set the ambitious goal of boosting manufacturing as a percentage of India's gross domestic product to 25% from 16% today. The WSJ has been examining some of the issues he faces in getting there. And, in advance of Mr. Singh's discussion with his Cabinet Thursday that will pave the way for the implementation of the new manufacturing drive, India Real Time surveyed economists to see what they see as the biggest measures need to reach that goal.
India's economy grew at 8.5% in the year ended March 31 but has shown signs of slowing. Yet the government is aiming to reach a double-digit growth rate in the next few years and to outpace India's larger northern neighbor, China, which has sustained rapid growth as it successfully scaled up its manufacturing capabilities over the past years.
India hasn't shown a similar rise in manufacturing even as services have soared and agriculture has dropped, as a percentage of overall economic output. Some have argued that the rise of services – from outsourcing to finance – means that India won't need an industrial revolution to bolster its development. Others point to history, showing that China, Taiwan, Japan, South Korea and, much earlier, Europe and the U.S., could on [...]
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