Stagnant Manufacturing: Governance and Policy Slack: E Book by IKF (IRIS Knowledge Foundation), Mumbai, India jointly with Forum for Global Knowledge Sharing.

There is optimism in the air with `Make-In-India' campaign and in these eSSays analysts focus on the issues. 
The first essay by Aradhna Aggarwal deals with the decline of manufacturing in all its aspects, including employment, inter-state differences and technological change. The next essay deals with the main cause of decline, namely, poor investment climate. Biswanath Goldar advocates the creation of a large number of industrial jobs through rapid growth of the manufacturing sector. Arup Mitra argues that growth alone is not sufficient to achieve major improvements in economic and social well being of the poorer sections. Vinish Kathuria emphasises the importance of the informal sector and argues that for both manufacturing and services the informal sector has been the major employer. Kalirajan and Nguyen discuss the huge potential in exporting environmentally friendly goods for which there is a huge global demand.Finally Bino Paul analyses wages and productivity relationships.

The compilation in the form of E Book (PDF) can be downloaded free (after registration) with Forum for Global Knowledge Sharing

Missed manufacturing- next cycle may be century away.

Prime Minister in his message to the report `National Strategy for Manufacturing (2006)' acknowledge that share of manufacturing in national income had shown only a marginal improvement from 15.8% in 1991 to 17% in 2003. He wanted it between 25% to 35%. This goal of 25% was never reached. Share of Manufacturing has come down to 15.2% in 2012-13 from 15.7% in 2011-12. 

Despite regular announcements to boost up manufacturing with policy interventions, it seems India would never achieve the coveted 25% share. Researcher Dani Rodrik says de-acceleration in manufacturing is cyclic and inevitable, both developed and developing countries have gone through the phase of accelerated growth followed by decline in manufacturing. The critical difference is the peak reached before the decline sets in.

In UK before world war 1 had 45% of workforce in manufacturing, now less than 10%. USA had 25-27% of workforce in manufacturing in early nineteenth century , now less than 10%. In Sweden manufacturing peaked to 33%, Germany to 40% before decline had set in.
India peaked at 13-15% in 2002 and has since trended down. When US, Britain, Germany, Sweden began to deindustrialize their per capita income reached $10,000 (at 1990 prices). India switched to service sector at much lower per capita income.

Will India stagnate as a service economy at low income level?
Read more at http://www.project-syndicate.org/commentary/developing-economies--missing-manufacturing-by-dani-rodrik#kTJKPCAZbH1yIdLC.99