I’m not sure if this is still true but awhile back, I read that setting up factories in India can be expensive due to lack of energy infrastructure. A lot of factories expect to run 24/7 and the added cost of backup power systems was an issue for investors, especially in low-margin, high volume, competitive industries where every hour of downtime (or fuel costs for backup generators) made a difference.
Those grid capacity issues may have been fixed in the time since I read about it. It was a few years ago and the energy-sector has changed a lot. But if that’s still a problem, it would be a better place to invest government funds, especially now that renewables+battery backup are relatively cheap and don’t have to be imported.
There’s so many reasons India would make an ideal manufacturing hub. If they can fix whatever issues (infrastructure or bureaucracy or whatever), they won’t need a subsidy scheme to attract investment.
I’m not sure if this is still true but awhile back, I read that setting up factories in India can be expensive due to lack of energy infrastructure. A lot of factories expect to run 24/7 and the added cost of backup power systems was an issue for investors, especially in low-margin, high volume, competitive industries where every hour of downtime (or fuel costs for backup generators) made a difference.
Those grid capacity issues may have been fixed in the time since I read about it. It was a few years ago and the energy-sector has changed a lot. But if that’s still a problem, it would be a better place to invest government funds, especially now that renewables+battery backup are relatively cheap and don’t have to be imported.
There’s so many reasons India would make an ideal manufacturing hub. If they can fix whatever issues (infrastructure or bureaucracy or whatever), they won’t need a subsidy scheme to attract investment.