The things you say are not so easy to implement as our Rs is link with $ but chines currency is not. They produce & supply material at such a rate that even raw material is not available in India at that rate. It is our wish that we could self sufficient in hardware. no doubt we have technology but economy aspect is supreme . Now NO ups / Inverter up to 5 KVA is manufactured in India. Indian manufacturers had to either closed down or import or assemble from china. Telephone instrument is imported below Rs 50/- now tell me the Indian raw material price.
There must be strong erg to use local material then what about IC chips ? we totally import the same although the design of Pentium was done by Vinod an Indian.
Who has blocked you to manufacture the things you want now there is no license requirement & free import of goods, You can start manufacturing anything as on today. Government have little role in it.
Every thing in market is govern by price. we don't have slave labors as in china.In our country labor cost is far more than china & not affordable to produce competitive products.
Our strength is in Quality , now people are willing to pay higher for better quality. In this area if you have quality product then & then you can super seed china products.
Even I am having great ideas but nobody is there to listen / capable to understand. It is their ( railways ) loss we can't help. Government never encourage innovation neither support R&D. The quality pf PhD theses is the indicator of it.
When quality is secondary to category what else can you expect , The cream people leave country & serve foreign nations. more