Exclusive-India's 23 billion dollars to compete with Chinese factories to the Lander after disappointed

But Delhi had previously recognized the problems and agreed to extend the deadlines and increase the payment frequency after the complaints of participants in the fold. One of the Indian officials, who spoke on condition of anonymity to discuss confidential issues, said that excessive administrative formalities and bureaucratic prudence continued to stifle the efficiency of the program.

As an alternative, India plans to support certain sectors by partially repaying investments made to set up factories, which would allow companies to recover costs faster than having to wait for production and sale, said another manager.

The commercial expert Biswajit Dhar in the Delhi -based social development board's thinking group, who said that Modi's government should do more to attract foreign investments, said the country could have missed its moment.

The incentive program was “perhaps the last chance we had to relaunch our manufacturing sector,” he said. “If this kind of mega-scheme fails, do you expect something to succeed?”

The manufacturing scores comes as India is trying to bypass the trade unleashed by the US President Donald Trump, who criticized Delhi's protectionist policies.

Trump's threat of reciprocal prices on countries like India which has a trade surplus with the United States means that the export sector is increasingly disputed, Dhar said. “There was a certain pricing protection … and everything that will be reduced.”

Strike and lack

The program was introduced at a timely moment for India: China, which for decades was the world factory plan, had trouble maintaining production in the zero-cook policy of Beijing.

The United States also sought to reduce its economic dependence on an increasingly assertive Beijing, which has prompted many multinationals to pursue a policy of “China plus one” of diversification of production lines.

With its large young population, lower costs and a government considered relatively friendly with the West, India seemed to benefit from it.

India has become a world leader in pharmaceutical production and mobile phone in recent years.

The country produced a value of $ 49 billion in mobiles during the year 2023-24, up 63% compared to 2020 to 21, according to government data. Industry leaders like Apple now make their most recent and most sophisticated mobile phones in India, after starting with low -cost models.

Likewise, pharmaceutical exports almost doubled at $ 27.85 billion in 2023-24 a decade ago.

But success has not been repeated in the other sectors, which include the manufacture of steel, textiles and solar panels. India faces fierce competition from cheaper rivals like China in many of these areas.

In the solar industry, for example, eight of the 12 companies that have registered in Plé are unlikely to achieve their objectives, according to an analysis of December 2024 in the sector prepared by the Ministry of Renewable Energies and seen by Reuters. The eight companies included appeal units, an Adani group and the Indian conglomerate JSW.

The analysis revealed that the reliance entity would only reach 50% of the production target that it had been set for the end of the 2027 financial year, when the solar program PLI expires. He also said that Adani had not ordered equipment he needed to make the solar panels and that JSW had “done nothing”.

JSW refused to comment, while Adani did not answer questions.

The Ministry of Commerce declared in a letter of January to the Ministry of Renewable Energies seen by Reuters that it would not accept the request of its counterpart to extend the program beyond 2027, which would lead to an unjust advantage for non-performance “.

The Ministry of Renewable Energies declared in response to the questions of Reuters according to which it was attached to “equity and responsibility”, as well as “ensure that only those who achieve their objectives are rewarded”.

In the steel sector, investment and production are also late. Fourteen of the 58 projects approved for folds have been removed or deleted due to the lack of progress, according to the analysis not dated at the program scale.

(1 $ = 86,4425 Indian rupees)

(Report by Shivangi Accharya and Sarita Chaganti Singh; edition by Aftab Ahmed and Katerina Ang)