When it comes to other companies sourcing production into a country. It is a two-way deal. India thinks that by declaring "Make In India" and having a young demographic, that companies would come knocking. Well, it doesn't work that way does it?
I don't know enough of Bangladesh to understand 100% why they were far more successful than India at attracting foreign companies to manufacture there. But results speaks for itself. They must be doing many things right that India is doing so wrong. Bangladeshi labor is very much sought after both within and outside of the country.
India has a far larger working-age population than Bangladesh. But India barely attracts foreign sourcing of manufacturing into the country. Despite 'Make In India', there are more red tapes in India's bureaucracy than there ever was. Can't describe this stupidity.
Then I have heard a story by some Indian analyst that was critical of 'Make In India'. The story was about a Japanese company wanting to set up a factory in India. Super cheap land was offered to build that factory. Good, but infrastructure such as electricity, water, and roads are not available. And that company had to invest their own money to build the roads, ground-water well(s), and substation to connect the factory to the electricity grid. After all that is done, the factory experienced rolling black outs from the national electricity grid. Many factory machinery were damaged from the blackouts. So they had enough and pulled out of India.
Apart from just skilled and low cost labor. China and the Asian Tigers would set up infrastructure and industrial zones for foreign companies to set up their factories there. They ensure that these factories not only get low-wage skilled workers, but also electricity, water, and the roads to connect them to the overall supply chain. Infrastructure for these factories such as ports, rails, highways, power plants, water supply facilities, sewer, etc are mostly built by the government. The foreign companies just need to spend on building and setting up the factory, and off course paying their taxes and bills. When the local industries start to emerge later, they can leverage on these same infrastructure and excel. That is why China' BRI is so enthusiastic to build up infrastructure in less fortunate countries. Infrastructure is the foundation for a modern economy.
Bangladesh, Vietnam, and Indonesia are in their own ways getting it right without any loud slogan like "Make In ...". But India continues to consistently get it wrong. And its getting even worse. There is ever more protectionism, erratic laws, a PM that makes big decisions on a whim, and uncontrolled nationalism. India has big dreams to be a Super Powah. But instead of putting its head down and working hard, it makes excuses. Then has the audacity to brag to the world that its already better than China. Well, India can continue dreaming, while Bangladesh overtakes it.
