Indian manufacturing sector stands presently at 16 percent of the gdp and for a nation that claims to be a superpower India needs to up it game and increase this share to 40 percent at least. For we cannot simply keep relying on other nations for commercial/civil and military imports. A nation that is self sufficient in terms of its vital needs say such as security concerns can make decisions and policies more independently and strategically.
Say if we were not importing defence equipment from Israel then we would not have to neglect or turn a bind eye to Palestine and their suffering. Indian support to Palestine could have had huge reverberance in the middle east and the image of our country as a nation supporting pluralism would improve. But we cannot do that, for we are both reliant upon US and Israel for our needs.
Another good example from history, would be the Bangladesh liberation war of 1971. So India was a food deficient country on the eve of its independence as a result we were quiet reliant on USA's PL-480 program to feed our nation. However, during the 60's (or for that matter during the entire period of cold war era) USA was a staunch ally of Pakistan, this meant that if India helped liberate East Pakistan then repercussions could come in the form of banning of essential food imports from US which could badly affect the country and the stability of the government in power. MS Swaminathan says that if it was not for the rich dividends of the green revolution of lates 1960s then India would not have been able to act so decisively and probably we would not have a Bangladesh. Phew!! things could have been pretty grim for India in that case surrounded by a hostile nation on both sides. Things have not changed much today, we need technology and manufacturing to penetrate agriculture sector again so that our productivity increases and we are able to both diversify and increase our yield. Presently, the problem of food inflation i would say is as much threatening as the problem of naxalism if not more, to our nations socio economic development.
Further Economics 101 dictates that it is draining on the nations resources when imports exceeds exports ie a high current account deficit and fiscal deficit are bad for the over all macro economic stability.
So lets see what are the present problems that manufacturing in india is facing
Say if we were not importing defence equipment from Israel then we would not have to neglect or turn a bind eye to Palestine and their suffering. Indian support to Palestine could have had huge reverberance in the middle east and the image of our country as a nation supporting pluralism would improve. But we cannot do that, for we are both reliant upon US and Israel for our needs.
Another good example from history, would be the Bangladesh liberation war of 1971. So India was a food deficient country on the eve of its independence as a result we were quiet reliant on USA's PL-480 program to feed our nation. However, during the 60's (or for that matter during the entire period of cold war era) USA was a staunch ally of Pakistan, this meant that if India helped liberate East Pakistan then repercussions could come in the form of banning of essential food imports from US which could badly affect the country and the stability of the government in power. MS Swaminathan says that if it was not for the rich dividends of the green revolution of lates 1960s then India would not have been able to act so decisively and probably we would not have a Bangladesh. Phew!! things could have been pretty grim for India in that case surrounded by a hostile nation on both sides. Things have not changed much today, we need technology and manufacturing to penetrate agriculture sector again so that our productivity increases and we are able to both diversify and increase our yield. Presently, the problem of food inflation i would say is as much threatening as the problem of naxalism if not more, to our nations socio economic development.
Further Economics 101 dictates that it is draining on the nations resources when imports exceeds exports ie a high current account deficit and fiscal deficit are bad for the over all macro economic stability.
So lets see what are the present problems that manufacturing in india is facing
