Maybe not NIMBYism, but loads and loads of red tape for land acquisition. Especially since all of the land that is not explicitly for non agricultural use is agricultural, and converting it to non agricultural is a whole process usually involving bribes to 20 different officials. See this blog[1] that was posted to HN a while ago[2]
[1]: https://superr.in/economy/i-tried-starting-a-manufacturing-u...
[2]: https://news.ycombinator.com/item?id=24106545