Here I would like to express my views that before thinking about manufacturing we have to think about Infrastructure in our country. I have been there in China and seen how one can ship out the goods in many ways ( Pick up , trucks, containers, air ) to far and that too in very less time. While going around 250 Kms. they are paying around 300 to 500 Indian rupees as toll tax or entering other PROVINCE tax but that they dont mind because they wide, neat and clear highways.
As far as travelling of Individual is concern one can travel by Train,Metro,Taxi,Scooters ( I think by now it has banned in few metros ),Bus,Ferry & Air.
Moreover government of China supporting Chinese Manufacturer by giving Export Refunds. Even though they are selling their products in equal price of manufacturing they will be making 10 to 15% profit. Not to mention the best hospitality you get from Chinese people even though we know it they are money centric.
For each item ( Mobile,Sun Glass )China is making COPY products which is also one of the attraction of foreign buyers.
In place like Dubai ( May be not even one state big of our country ) we can clear one container within one day.
I agree with you Meenakshi Radhakrishnan-Swami that it is high time we must concentrate more in Manufacturing may be small scale with a Brand products.
