Why do large government schemes for advanced technology manufacturing, like battery production, often fail to meet their goals?

Large government schemes aimed at promoting advanced technology manufacturing, such as battery production, are often launched with the goal of building domestic capacity, reducing imports, and fostering innovation. However, these schemes frequently fall short of their targets due to a mix of structural, administrative, and market-related challenges.

• Lack of Technical Expertise: Advanced manufacturing requires specialized knowledge and skilled manpower, which may be limited in the country. The gap in research and development capabilities hampers innovation and efficient production.
• Supply Chain Constraints: Critical raw materials (like lithium, cobalt, nickel for batteries) are often imported, making the industry vulnerable to global supply disruptions and price volatility.
• Delays in Policy Implementation: Bureaucratic delays, slow approval processes, and lack of coordination between central and state agencies can stall project execution.
• Financing and Investment Issues: High initial investment and long gestation periods deter private players. Uncertainty in policy or inconsistent incentives also makes investors wary.
• Insufficient Infrastructure: Inadequate power supply, logistics, and industrial infrastructure increase production costs and reduce competitiveness.
• Rapidly Evolving Technology: The technology landscape in sectors like battery manufacturing changes quickly, making it difficult for schemes to remain relevant or for manufacturers to keep up without continuous support.
• Market Demand Uncertainty: Domestic demand for advanced products may not be strong enough initially to sustain large-scale manufacturing, leading to underutilized capacities.
• Global Competition: Established international players often have economies of scale, advanced technology, and established supply chains, making it hard for new domestic ventures to compete.
• Regulatory and Environmental Challenges: Compliance with environmental norms and obtaining necessary clearances can be time-consuming and costly.