Investment trends in post-reforms India

[Lawrence]

> Strangely, after the reforms, the net capital intensity of the
manufacturing
> sector is rising at a remarkable rate. This means the employment growth
rate
> in this sector will go up at a decreasing rate. We seem to have reached
the
> nemesis of higher wage rates in the manufacturing sector leading to
greater
> capital intensity in that sector. Trade unions have to bother about this
> issue, so also the political parties that support trade unions in the
> organised sector

This is very interesting, but why is the output ratio rising after the
reforms? Is it because the reforms were badly/inadequately done, or because
the reforms are actually worse than what preceded them?