Manufacturing in India: How Budget 2025 Strengthening 'Make in India' for a Self-Reliant Future!
The Union Budget 2025 lays a strong foundation for India's manufacturing sector, emphasizing ease of doing business, cost efficiency, technological advancements, and financial support for MSMEs.
The Union Budget 2025 lays a strong foundation for India's manufacturing sector, emphasizing ease of doing business, cost efficiency, technological advancements, and financial support for MSMEs. To further the ‘Make in India’ vision, the government has increased investment and turnover limits for MSMEs by 2.5 times and 2 times, respectively, enabling them to scale up operations and access better capital.
To elevate the footwear and leather sector, a focus product scheme has been introduced, aiming to create 22 lakh jobs and generate a turnover of Rs 4 lakh crore. Similarly, a new initiative under the National Action Plan for Toys will establish India as a global toy manufacturing hub by developing clusters, improving skills, and fostering a robust ecosystem.
In line with sustainable development goals, the Mission will also boost clean tech manufacturing, fostering the production of solar PV cells, EV batteries, wind turbines, and high-voltage transmission equipment. Support for domestic manufacturing and critical minerals is another key highlight, with exemptions on cobalt powder, lithium-ion battery waste, lead, zinc, and 12 other critical minerals to ensure their availability for industrial use and job creation.
The textile sector benefits from exemptions on shuttle-less looms and a revised Basic Customs Duty (BCD) structure for knitted fabrics. The electronic goods industry will see an increase in BCD on Interactive Flat Panel Displays to 20 per cent, while Open Cells and components will have reduced duties to promote local production.
With these measures, Budget 2025 strengthens India's manufacturing ecosystem, driving innovation, sustainability, and employment generation. By focusing on technology, financial assistance, and sector-specific incentives, the budget paves the way for India to emerge as a global manufacturing powerhouse, fostering long-term economic growth and self-reliance.
Disclaimer: The article is for informational purposes only and not investment advice.
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