India's $23 Billion Manufacturing Gamble: A Road Less Traveled

The Indian government's ambitious $23 billion plan to boost domestic manufacturing is being discontinued. Initiated to reduce reliance on China, the program faced challenges with subsidy payouts and bureaucratic hurdles, despite success in sectors like pharmaceuticals and mobile phones. New alternatives are being considered to revive manufacturing ambitions.

In a significant policy shift, the Indian government announced it will discontinue its $23 billion initiative aimed at encouraging domestic manufacturing. The decision comes just four years after the program's launch, intended to entice firms away from China.

The scheme, covering 14 initial sectors, faced hurdles in subsidy disbursements and failed to extend beyond its pilot phase. Despite some success in pharmaceutical and mobile-phone production, delays and unmet manufacturing targets marred its execution, reflective of growing bureaucratic challenges.

While India's manufacturing share dipped under Prime Minister Modi's tenure, officials assert that alternative plans are underway. As the nation strives to navigate global trade challenges, experts like Biswajit Dhar caution that missing this opportunity could stifle India's manufacturing growth prospects.

(With inputs from agencies.)