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Manufacturing

Challenges

Source: TW

Labour costs are much lower in India than China but the productivity of our labour critically depends on capital goods and technology modernization in our manufacturing, particularly from the small and mid-sized manufacturers that collectively dominate the supply chain of consumer goods.

That needs investment, particularly from our small to mid-sized manufacturers. The barriers to that investment are both financial (higher interest rates in India) and cultural (too conservative to adopt the latest production technology). Enabling the small and mid-sized manufacturers to overcome these barriers is the key to India becoming a great manufacturing power.