A new book asks what ails Indian manufacturing and whether it can increase its share in the economy

Despite the many efforts of the first two Modi governments, manufacturing’s share has refused to budge over 17 per cent, mostly staying stuck at 14-15 per cent. Made in India and Atmanirbhar Bharat have not made much of a difference in the larger scheme of things in making India a powerful manufacturing-led economy. Nor is Modi alone in failing to make the manufacturing sector a bigger part of the economy.

His predecessors – Manmohan Singh as well as AB Vajpayee – too tried their best. The goal of manufacturing becoming 25 per cent of the Indian economy has been the goal of successive governments for several decades now. But the share of manufacturing has never crossed 20 per cent for the past few decades, mostly hovering around 18 per cent or lower.

In fact, since economic liberalisation, most governments have hoped to make India a manufacturing powerhouse – and several have laid out the red carpet to get global manufacturers to invest in India. But though splashy announcements of global investors have been made from time to time, the fact remains that many global manufacturing giants have come, taken a hard look, and then chosen other destinations – from Vietnam to Korea –...

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