A lot of companies want an alternative to their Chinese suppliers and are looking at India as a choice. What drive them back is the above said two things. The labour laws made sense for the post-independence India. Social stability was important than anything else for a young nation. Now, we are a confident nation ready to compete. The young population, hungry for success, is not realizing its full potential because of this. Companies are hesitant to hire more people because when the business changes it is hard to retrench. Even when there is a huge growth potential, companies do not want to take a huge risk with hiring more people. You could argue that a slash and burn culture will destroy livelihoods. We have a choice between disturbing livelihoods and no life at all. By changing the laws, more people will get jobs and some will surely lose their jobs. Ultimately there will be a net gain of jobs. The U.S labour laws are flexible and it has not destroyed the country. What destroyed the country was shipping jobs overseas. The country forgot the importance of manufacturing, and paid for it.
Power and roads are our next biggest hurdles. If the govt. focuses on these, there will be a multiplier effect. Creating infrastructure by itself will create jobs and pave way for growth which then creates even more jobs.
I look forward to facing these challenges as I move back.