Major reasons are:
- Low capital investment in infrastructure.
- Rising NPA after financial crisis and Twin balance sheet problem.
- Opening up of economy in 1991 had make us vulnerable as manufacturing country. We did capitalise on service sector.
- Labour laws skewed in favour of non-setting up of manufacturing units.
- Low investment in Research and development sector.
- Non availability of skilled labour force.
- Enforcement of contract and complexity in labour laws is a complex issue.
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