Exactly.
There seems to be assumption or belief both in the forum and India in general that a large population is bound to invite low end manufacturing simply due to cheap labor.
It is only after the recent trends over the past few years have people started to realize that cheap labor cannot be used as a magnet to invite manufacturing.
Contrary to the popular belief the low end manufacturing segment of the world economy is not up for grab to the lowest bidder.
It is extremely competitive in nature and the low cost segment focus on cost savings in the entirety and not labor only.
Location
infrastructure
transportation
shipment duties
skilled labor in that category
friendly market
cheap labor
All of these combinations together form the core of low end manufacturing industry worldwide. Excelling in only one or few of these will not bring in the desired results.
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This is also one of the prime reasons of ASEAN successfully taking over the manufacturing leaving china.
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Until and unless we identify the core problems and act on them we will continue to face similar results.