- Infrastructural Issues:
- Difficult land acquisition processes.
- Poor and costly transportation infrastructure (railways, roads).
- Inefficient ports leading to delays.
- Lack of 24x7 availability of cheap power.
- Regulatory Issues:
- Complicated labor laws (e.g., ID Act, Contract Labour Act).
- Firms wary of hiring due to rigid firing rules.
- Multitude of inconsistent labor laws.
- Time-consuming and difficult government approvals/clearances.
- Other Challenges:
- Low labor productivity and insufficient skills.
- Investment from shell companies (suspected black money).
- Small size of industrial units, hindering economies of scale.
- Global manufacturing is shrinking, making export-led growth harder.
- Competition from China.