It is clear that in manufacturing, we are not competitive compared to China. Critical factors are cost and quality. Though quality is not a big problem. High quality at lower cost is the challenge.
The greatest challenge in front of Indian economy is to make it lower cost.
We should do everything in our power to bring down the costs. First let us look at labour costs. While minimum wages cannot be lowered, we need to provide a higher standard of living to our workers. This can be done by taking the work to their town. A person getting 10 thousands per month in Delhi is far poorer to another one getting 6 thousands in his own home town. One of the major element of costs in city is the real estate cost.
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