The scheme is crucial for boosting the broader Indian economy, which has suffered from a lack of private investment for nearly a decade and struggles to create sufficient jobs, especially in manufacturing.
The $24 billion scheme, launched in 2020, covers 14 sectors including electronic products and pharmaceutical drugs. However, it has only been successful in a few sectors thus far.
The meeting, led by India’s cabinet secretary Rajiv Gauba, focused on sectors performing well under the scheme. Another meeting will be scheduled soon to discuss sectors that have yet to show progress, the official told reporters. The official requested anonymity as details of these review meetings have not been made public.
According to a government report seen by Reuters, total incentives worth 34.20 billion rupees ($413.29 million) have been claimed as of March, but little has been paid out to businesses in six sectors, including specialty steel products, solar modules, and car components.
As part of the ongoing review, the government met with major global firms such as Foxconn, Samsung Electronics Wistron, and Reliance Industries in June. These firms are expected to benefit from the scheme’s incentive payouts. Suggestions from these companies include faster payouts and expedited visa applications for vendors from countries like China when their expertise is required for local production.
The government estimates that investments under the program have totaled 625 billion rupees as of March, and this number is expected to rise to 2.74 trillion rupees as the program progresses. The majority of investments and incentives have been in large-scale electronics manufacturing, pharmaceutical drugs production, medical devices, bulk drugs, telecom products, food products, drone and drone components, according to the government report.