The medium term challenge for Indian manufacturing is to move from lower to higher tech sectors, from lower to higher value- added sectors, and from lower to higher productivity sectors. Medium tech industries are primarily capital intensive and resource processing; and high tech industries are mainly capital and technology intensive. In order to push the share of manufacturing in overall GDP to the projected 25 per cent. Indian manufacturing needs to capture the global market in sectors showing a rising trend in demand. These sectors are largely high technology and capital intensive.

Correct Option (C)

The passage identifies a medium-term challenge for Indian manufacturing: to transition from lower to higher technology, value-added, and productivity sectors. It specifies that high-tech industries are capital and technology intensive, and that India must capture global market share in these rising demand sectors to achieve a 25% manufacturing share in GDP. A logical and rational inference is that such a transition and market capture necessitate substantial investments in research and development, technology upgradation, and skill development, involving both public and private sectors.

Incorrect Options:

• Option (A) is incorrect because the passage frames the shift from lower to higher value-added and productivity sectors as a challenge, implying that India's current medium-tech and resource processing industries generally do not yet exhibit high value-added and productivity levels.
• Option (B) is incorrect because the passage outlines a strategy and necessity for promoting capital and technology-intensive manufacturing to achieve specific economic goals, thereby suggesting its feasibility and importance, rather than impossibility.
• Option (D) is incorrect because the passage states that Indian manufacturing needs to capture the global market in sectors showing a rising trend in demand. This indicates a future objective and a current gap, not an already achieved significant market share.