There are many industries where India has an advantage because of relatively lower Costs of all forms of manpower whether it is professional or factory labour. However, while this can give initial advantage, it should not be taken for an enduring advantage due to the following reasons. One as products become more sophisticated, labour as cost factor becomes less and less important. Two, the differences in costs are narrowed down through a higher level of automation. There, in processes that require large number of cheap labour, the industry is bound to shift its operation along; the line of the ever-declining scale of poorer countries.  So a poorer country than India can eventually overtake us with yet cheaper labour. Therefore, when one has established an export market on the basis of cheaper manpower …………..