Stop India’s $ 2 billion plan to compete with China
reports Mehr News Agency China was launched, after failing to achieve the set goals, it will not continue.
Production-related incentives program included 4 pilot industries, and about 2 Foxkan (Apple supplier) and the Religion were involved. The purpose of the plan was to increase the share of production in the Indian economy to 5 % to 5 years, but in practice many companies failed to launch production, while others faced long delays to receive promised subsidies.
The poor performance of the project has occurred in these areas: Companies achieved only 5 % of the set goal. By October 1, the value of the goods produced in the program was $ 1.5 billion, while the government paid only $ 1.5 billion (less than 2 percent of the total budget) as an incentive. The share of the manufacturing sector in the economy decreased by 4.9 percent at the time of the start of the program.
There are also limited successes in the project, including significant results in pharmaceutical and mobile production sectors. India produced about $ 5 billion in mobile phones in the year 1 to 2, which shows a 2 percent increase over the past year. Pharmaceutical exports have also doubled in the past decade, reaching $ 1.5 billion.
The major challenges in the project were also as follows: Steel, textiles and solar energy failed to compete with low-cost competitors such as China. Of the 5 companies active in the production of solar panels, 4 will probably not achieve the set goals. In the steel sector, out of the 2 approved projects, 2 were stopped due to lack of progress.
Government officials have said that this stop does not mean abandoning Indian industrial programs, and alternative options such as paying part of corporate investment costs are being reviewed.
Analysts believe that the program may have been India’s last opportunity to revive the production sector. With the continuation of the US -China trade war, conditions have changed for global producers, and India must take more effective measures to attract foreign investment.
