India will attract more foreign capital if it addresses key gaps
SummaryProduction incentives aren’t enough to lure the investments needed.
By the looks of it, Indian Prime Minister Narendra Modi’s manufacturing drive is on the up, with all the trappings of imminent success. Multinational companies and long-term foreign investors like private equity giant Blackstone have their sights on India. The recently unveiled budget boosts capital spending by more than expected. With a host of subsidies and sweeteners, firms like Apple Inc and Samsung Electronics are making big commitments to the country. Yet, a look at the Indian units of long-established multinationals shows how much help the industrial sector will need.