A major issue that is never highlighted is that these early factories acquired their machinery from India, sometimes 100 year-old reconditioned machines, at a considerable cost (corruption ilianza kitambo). They were primed to fail from the word go. Indian machinery is super low quality, and only works in India, where replacement parts can be obtained within days at extremely low costs. Plus low efficiency in India is never an issue since every producer is inefficient.
It is the experience worldwide that Indian machinery cannot function in a normal market environment where manufacturers have to compete with others from other countries.