India’s biggest problem is not talent or enough willing hard workers. India’s biggest problem is it’s infrastructure as regards both transportation and energy.
Political moves to bring more “federalism” into Indian governance could help break some of the infrastructure bottlenecks.
If India focused more political energy on that than it seems willing to put into protectist measures it would find less popular incentive for those protectionist measures as more foreign firms WILLINGLY chose to make investments in India and more Indians became employees of those firms.
Its not so much of a protectionist measure. There is no “domestic industry” that they are trying to protect here. Its just a condition that if you want access to Indian market then you must also create some manufacturing jobs there. China had the exact same policy for years. No one talks about but look where they are today.