India draws investments worth $19 billion under key production scheme, government says

NEW DELHI: India’s key manufacturing scheme received investments of nearly $19 billion as of November last year, the trade ministry said on Saturday, a day after Reuters reported New Delhi will let the $23-billion incentive program lapse amid disappointing results.

The incentive scheme will not be expanded beyond 14 pilot sectors and production deadlines will not be extended despite requests from some participating firms, Reuters has reported.

The trade ministry, in a statement, said private firms had produced goods worth nearly $163 billion under the scheme, 90% of the target until fiscal year 2024/25, and the government had in turn paid out less than $1.7 billion in incentives.

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The payouts make for 8% of the scheme’s intended subsidies, Reuters had reported.

Projects are implemented over two to three years and claims are usually made after the first year of production, as per the statement. “Hence, most of the projects are at implementation stage and will be filing incentive claims in due course.”

The trade ministry’s statement did not mention the Reuters report.