Many of India's old industries, such as machine tools, general engineering and basic textiles, remain mired in inefficiencies and protectionism.

ECONOMIST: Manufacturing in India

The government's strategy has been to treat imports of capital goods, such as machine tools, relatively generously (to help Kia and its peers improve their manufacturing), while clamping down on imports of western consumer goods, such as cars.

ECONOMIST: South Korea��s firms

In manufacturing, innovations such as programmable machine tools make capital equipment more flexible, creating a demand for more flexible human capital, too.

ECONOMIST: Why pay is becoming less equal

An investment boom from 2001-04, for example, paved the way for the ballooning surplus of 2004-07, according to Jonathan Anderson, formerly of UBS. That investment poured into heavy industries, such as aluminium, machine tools, cement, chemicals and steel.

ECONOMIST: China��s economy

Most recently, the Administration decided on 19 January 1990 to exempt certain East European countries from export controls on selected items such as advanced computers, telecommunications equipment, and machine tools.

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