- Infrastructural Bottlenecks:
- Difficult land acquisition processes.
- Poor and costly transportation infrastructure (railways, roads).
- Inefficient ports leading to delays in trade.
- Lack of 24x7 availability of cheap power.
- Regulatory and Labor Issues:
- Complicated labor laws (e.g., ID Act, Contract Labour Act).
- Difficult to fire workers, deterring hiring.
- Multitude of inconsistent labor laws.
- Time-consuming and difficult government approvals/clearances.
- Lack of Economies of Scale: Reservation policies for small scale firms.
- Import Substitution Industrialization (ISI): Failed to make a timely shift from export pessimism.
- Competition: Manufacturing is shrinking globally, and India faces competition from China.