Yes Datta, so many vocational courses, engineers, diplomas and of course the brain drain. It would be a nice pace of things to see that such a endeavour can take shape :)

Kiran, in a sense I agree to what you are saying. It is a very tricky thing to establish new businesses and venture out into new markets, esp when a concept so huge is being tried out, it is going to be very dicey to know which exactly is going to make that difference. In a way, even if it is a western firm setting up a manufacturing plant in India, the government can still oversee, define the labor laws and manufacturing laws, and royalties for the provisions of these.

Ideally in any business scenario, one would look at a win win situation, even in this case, the country which is investing is going to make a lot of money and so is India. Neither of us are going to lose much, since it is a global market we are dealing with, the success of the product means more orders which means more opportunities to work and of course an economic growth. In this case, we are not just providing the labor but reaping benefits out of it. Like any new decision, it has two phases, the trick might be to make the best use of it. I agree, no one cares anymore as to where the product is made from but China has had a very strong economy because of its manufacturing policies. If we look at India, manufacturing is the weakest link which is being addressed by this provision.

As for the local industries suffering, I agree that it is a disadvantage for them, but if you look at the law of numbers and sheer magnitude of opportunities this can create, it is a lesser risk. And competition is always a good thing, the older companies will find a better way to operate and ultimately the consumer gains which again leads me to a win win situation :)