Experts said plans to convert India into a manufacturing giant like China could be realised only if Mr Modi improved the ease of doing business on the ground by bringing about big reforms like the goods and services tax (GST).
Mr Rishi Sahai, managing director of investment bank Cogence Advisors, said: "Manufacturers are worried about labour reforms, land acquisition and GST."
It does not make economic sense to manufacture in India without GST as goods invite multiple taxes when they pass through states, he said. "For instance, with solar equipment, Chinese imported goods are still 20 to 25 per cent cheaper than those made in India. So it's still cheaper to import than manufacture in India," Mr Sahai added.