India Ends $23B Manufacturing Incentive Scheme Amid Setbacks

India's government has disbursed around Rs 14,020 crore under the Production-Linked Incentive (PLI) schemes to boost manufacturing in ten sectors, including electronics and pharmaceuticals. Despite initial success, the program is set to lapse, with the government deciding not to extend the $23 billion initiative launched to attract companies away from China. Although 750 firms, including Foxconn and Reliance, joined the scheme, many failed to meet production targets, and only $1.73 billion of the promised incentives have been paid out. The program aimed to increase manufacturing's economic share to 25% by 2025 but has seen it decrease from 15.4% to 14.3%. While some sectors showed significant growth, others struggled with slow subsidy disbursements, contributing to the decision not to expand the scheme. This marks a significant setback in Prime Minister Modi's push to boost domestic production.