India's manufacturing push attracts $19B investment despite incentive lapse
What's the story
India's flagship manufacturing scheme has managed to draw investments worth nearly $19 billion till November last year, the trade ministry said in a statement.
The development comes after a Reuters report claimed that New Delhi decided to let the $23 billion incentive program lapse over disappointing results.
The scheme is unlikely to be extended beyond 14 pilot sectors, with production deadlines remaining firm despite requests from some firms.
Production goals
Private firms produce goods worth $163B
The trade ministry said private firms have manufactured goods worth nearly $163 billion under the scheme. This accounts for 90% of the target for fiscal year 2024/25.
In return, the government has paid out less than $1.7 billion in incentives, which is only 8% of the planned subsidies for this scheme.
Incentive claims
Projects are at implementation stage
The trade ministry's statement clarified that projects under the scheme are generally executed over 2-3 years, with claims usually submitted after the first year of production.
"Hence, most of the projects are at implementation stage and will be filing incentive claims in due course," it added.
Meaning, many projects are still ongoing and haven't even reached a stage where they can claim their full incentives.