I have heard third hand that a lot of foreign business people who went to India were not able to make any money. Indian business do not honor their agreements and makes the environment hostile for these business to succeed. Walmart was an example. Of course there are exceptions. foreign companies have successfully assembled and sell cars, cell phones etc which India needs. There was a well publicized event a few years back just before the common wealth games hosted by India. The corruption was so bad that they found living quarters were not ready for the athletes and bridges have collapsed in the arena a week before the games were to start. The PM at the time (I think it was Singh) had to find some extra money to pay for some urgent repairs. Foreign contractors were hired to do the repairs. Later on, the contractors bill for their work and the government did not have any money to pay. This is pretty incredible that a government as big as India would do something like that. Compared that to every other Western government or governments in East Asia, you just don't even imagine that the central government would not honor their contracts.
This is why I don’t think manufacturing will shift to India any time soon. Foreign companies would rather build factories in Bangladesh and Vietnam.