There is much to learn from the China story. In the late 1960s,when China pursued the idea of a steel plant in every backyard, the world scoffed. It was the era of big-ticket industrialisation and Chinas ridiculous perception of the small-scale, amused the West. By the turn of the century, China was the largest producer of steel while steel plants in the US and Europe were being knocked down and rebuilt elsewhere. The auto industry, too, gradually atrophied in the US, as China, Korea and India were taking over. Chinas earlier foray into The great leap forward failed because its macro view was misted and undefined. By thinking small, China was able to take a micro view of its road to industrial growth. It developed small and medium enterprise-oriented industrial zones which played a critical role in facilitating the growth of Chinese SMEs. from family operations catering to a local market to global powerhouses. These zones provided Chinese SMEs with good basic infrastructure (roads, energy, water and sewage), security, streamlined government regulations, affordable industrial land, technical training, low-cost standardised factory shells and worker housing. Chinese entrepreneurs were generously encouraged to learn and grow. Such singular foresight in diligently nurturing smaller industrial zones mostly catering to domestic SMEs, played a critical role in Chinas astonishing industrial development over the last two decades. Make in India lies in smaller but more innovative hands and minds.
No acche din sans right policy
Acche din also meant that industries would pick up and the many projects that were gathering dust would be re-energised. Apropos of your edit All cleared, nowhere to go, it is suggested that somehow this kind of impetus was provided by the government but despite that, things havent taken off. It might be true, but only partly. If you look at retrospective taxation, the debilitating clauses of the Companies Act, the land acquisition law, even the gas pricing logic, the new government is not getting anything right. Small measures are fine but if crucial time is lost on these, then the inertia of the sleeping projects keep building. Cost overruns will keep climbing. While we can wait for demand to pick up and the financial environment to become more settled and steady, the government must move on framing the right policy for business and projects to pick up.
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