1. High Govt regulation, permission, licensing, red tape, labor laws, politics
2. Irregular power and water supply
3. Poor infrastructure/Logistics- Roads, Bridges, Rails, Ports
Why do you think any other industry except manufacturing will be better off unless these are fixed?
They won't. Software oddly, managed to avoid dealing much with the Govt because no one understood it, customers were overseas, it brought in much needed foreign exchange. Software succeeded in spite of all this.