Four years after its inception the Indian government made a decision to end its USD 23 billion Production-Linked Initiative (PLI) program. Government officials stated that the program which targeted Chinese manufacturer relocation failed to reach its intended objectives.

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The PLI scheme will cease operations after its 14 designated sectors finish together with unadjusted deadlines. The production-linked initiative (PLI) program attracted 750 companies such as Foxconn and Reliance Industries as participants who wanted to raise India's manufacturing sector to 25% by 2025.

Many companies found difficulties starting their production operations while multiple firms experienced delays in obtaining their designated subsidy payments. Government records from October 2024 show that the target production reached only 37% and funds distribution ended at less than 8% of the total amount allocated.

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The public learns for the first time about both the termination of the program and the detailed payment delays. The Modi government together with the commerce ministry rejected multiple interview requests for this matter. Manufacturing share of the economy decreased from its original value to 14.3 percent since the launch of the program.

The government officials state that manufacturing plans for India continue while exploring new alternatives despite no statements from Foxconn nor Reliance. In the past the government upheld manufacturing program achievements for the pharmaceutical sector along with mobile phone development.

The government refused subsidies to several companies operating within the food industry because these companies did not satisfy investment requirements and did not achieve their growth goals. While the government has accepted the difficulties it faces from bureaucratic obstacles and red tape that limited the effectiveness of the program.

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As an alternative, India is exploring partial reimbursement of investments for plant setup, allowing faster cost recovery. Trade experts suggest that India may have missed a crucial opportunity to revitalize its manufacturing sector.

The program's lapse coincides with increasing trade tensions and tariff threats, further challenging India's export sector. The government is now considering new strategies to attract investment and boost domestic manufacturing, as it navigates a complex global economic landscape.