US EditionIndia's $23 billion plan to rival China factories to lapse after it disappoints
- India's government decided in early 2025 to let the $23 billion Production-Linked Incentive scheme lapse without extension beyond its 14 pilot sectors and 2027 deadline.
- The scheme aimed to boost manufacturing and shift production from China but faced delays as many firms failed to start production and subsidy payouts lagged amid bureaucratic hurdles.
- While pharmaceutical and mobile-phone sectors grew strongly and received 94% of nearly $620 million incentives between April and October 2024, overall manufacturing's share of GDP decreased from 15.4% to 14.3%.
- As of October 2024, firms produced $152 billion worth of goods, only 37% of the target, with under 8% of allocated incentives paid out, and the commerce ministry noted that extending the scheme would unfairly benefit underperformers.
- Officials stated that India will explore alternative support methods like investment reimbursements, indicating continued manufacturing ambitions despite the scheme’s expiry.
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Total News Sources25
Leaning Left3Leaning Right2Center2Last UpdatedBias Distribution43% Left
Bias Distribution
- 43% of the sources lean Left
43% Left
L 43%
C 29%
R 29%
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