but now govt is giving more priority for developing roads, rails and ports...but still not enough. Where as in china giving more importance for transportation for eg the high speed train between shanghai and Beijing which is now under testing

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I have been in the Auto Manufacturing Design industry in India and I can assure you that it will not only be the next China but has the potential to grow beyond. What I am concerned about is
1. Cost for quality by OEM's- they sure need to be worried about the profits but expecting to make 4times expected profits by paying peanuts to Indian workers who are equipped with skills and experiences to produce quality products cannot be a great idea for future.
2. One very important factor that any manufacturer should focus on when he enters India is you have people who have excellent practical knowledge but r week in concepts, math and basic communication and on the other hand you have smart college grades with excellent grab on concepts, theories and presentation skills but are not blessed by any on-plant exposure due to the present education pattern.
If this can be handled by a well structured business plan incoprating the educational instituties and Universities then you can accept not only an excellent poll of resources, but you would have built a long term and satisfied employee-employer relationship as well.

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The technical education in India has limitations as explained by you. Yes the curriculam gives more importance to theoretical and presentation skill.Even though the concept of industrial attachments is there, still I think it is premature stage.Since the govt has given node to open the branches of foreign universities in India, I hope this will also change. Another one thing is research ,Industry sponsored researches are not undertaken by majority of university apart from few prestigious institutions.But in the case of USA, Germany, China, singapore, the case is opposite.

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So, the Intelligence industry may have India a better future than manufacturing or cheap products due to India's advantages

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I don't think so ,India does not have so complete supply chain as China has in many fields ,especially in manufacturing fields,and the environment is much better than in India for investment, China has large land and Chinese Government is developing inland places and are going very well, the environments ,transportations,supply chains,trading,etc ,are getting much better year by year, company can provide good quality product with high competitive price.

 

India can not be the next China for manufacturing

If you go to an exhibition with both Indian manufacturer and Chinese companies present, you will get the answer. The Indian people seems like not enthusiastic about manufacturing jobs. They get there later than Chinese in the morning and withdraw early. When you come the boothes, you will get the generally opposite attitude from Chinese companies and Indian manufacturers. Chinese are more positive. From this point, I think India can not be the same level as China in manufacturing.