Global giants like Toyota have invested heavily in R&D to reduce the lead time from design to production.

For example, Toyota's central R&D labs have developed simulation models to predict the impact of noise, wind, and other factors on automobile frames and to use the resulting insights to design more robust frames. India needs to enhance such capabilities to "move the needle" toward value-added manufacturing.

However, this doesn't mean that India should neglect its low- and medium-technology industries. The bulk of job creation will happen in these sectors. But in the short run, India needs to start exporting finished goods.

For example, while the top two exports from India to China were cotton yarn and iron ore, China's top two exports to India were electronic goods and electrical machinery, indicating these growth economies' different positions in the manufacturing sector.
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