I have a cousin brother running a small scale manufacturing company. I had asked him out that as a businessman what do you think is the reason that India is not the world's manufacturing hub and what can be done to become so, he simply we have to ease labour laws and land acquistion laws, drastically improve infrastructure, improve education quality to produce skilled but low cost labours. He said that VLSI is taught to student in China in 12th(I don't know if it's correct). There are basically NO labour laws in China(again, don't know if it's correct).