The coming few years will be a litmus test for India’s ambition to become a manufacturing hub rivaling China. A big question mark is how quickly it can build out the infrastructure it needs to really seize the opportunity. There have been signs of progress recently, but New Delhi’s cramped fiscal space means it needs to do more to entice private-sector investors, too.

India is experiencing a manufacturing renaissance of sorts led by Apple and its Taiwanese suppliers—after decades of failed efforts. As recently as the fiscal year ended in March 2018, India was a importer of smartphones to the tune of more than $2 billion. Last fiscal year, India was a net exporter of $11 billion worth. About half of that was Apple products, according to investment bank Macquarie.