India'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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25 Articles
Business Times
Bible Prophecy In The Daily HeadlinesIndia’s US$23 billion plan to rival China factories to lapse after it disappoints
Indian Prime Minister Narendra Modi’s government has decided to let lapse a US$23 billion programme to incentivise domestic manufacturing, just four years after it launched the effort to woo firms away from China, according to four government officials.
India's $23 billion plan to rival China factories to lapse after disappointment
NEW DELHI: India Prime Minister Narendra Modi’s government has decided to let lapse a $23 billion program to incentivize domestic manufacturing, just four years after it launched the effort to woo firms away from China, according to four government officials. The scheme will not be expanded beyond the 14 pilot sectors and production deadlines will not be extended despite requests from some participating firms, two of the officials said. Keep up …
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