The Union Budget 2025-26 has unveiled a series of measures aimed at strengthening India’s manufacturing sector and achieving self-reliance. At the core of these initiatives is the National Manufacturing Mission a comprehensive program designed to revitalize industries of all sizes—small, medium, and large. With a focus on enhancing India’s global manufacturing footprint the budget aims to address key challenges and unlock the sector’s vast potential.
Key Highlights of the Budget
1. National Manufacturing Mission
- The mission aims to provide policy support, execution plans and a robust governance framework to boost manufacturing across sectors.
- It seeks to enhance India’s share in global manufacturing which currently stands at a mere 2.8% compared to China’s 28.8%.
2. Focus on Key Sectors
- Footwear: A focus product scheme will support the production of non-leather quality footwear alongside leather footwear and products.
- Battery Ecosystem: Investments in battery manufacturing to support the growing electric vehicle (EV) industry.
- Toy Manufacturing: Initiatives to promote local toy production and reduce dependency on imports.
- Shipbuilding: Measures to strengthen India’s shipbuilding capabilities and boost exports.
3. Employment and Economic Impact
- The footwear scheme alone is expected to create employment for 22 lakh people, generate a turnover of Rs 4 lakh crore, and achieve exports worth Rs 1.1 lakh crore.
Industry Reactions
1. Ashraya Rao, Partner, Khaitan & Co.
“The continued impetus to the industrial sector through the new announcements, coupled with increased focus on manufacturing signals strong growth potential. Tax rebates and a focused approach will be key to building a resilient and competitive manufacturing ecosystem.”
2. Dheeraj Hinduja, Executive Chairman, Ashok Leyland
“The launch of the National Manufacturing Mission will provide crucial policy backing, execution plans, and a governance framework to support the sector’s growth.”
India’s Manufacturing Potential
1. Global Manufacturing Share
- India’s current share in global manufacturing is 2.8% significantly lower than China’s 28.8%.
- The Economic Survey 2025 highlights the vast opportunity for India to expand its manufacturing footprint globally.
2. Contribution to GDP
- India has considerable potential to increase the industrial sector’s contribution to GDP, which lags behind peer countries.
FAQs
Q: What is the National Manufacturing Mission?
A: It is a government initiative aimed at boosting India’s manufacturing sector by providing policy support, execution plans, and a governance framework.
Q: Which sectors will benefit from the Budget 2025-26?
A: Key sectors include footwear, battery ecosystems, toy manufacturing, and shipbuilding.
Q: What are the expected outcomes of the footwear scheme?
A: The scheme is expected to create jobs for 22 lakh people, generate a turnover of Rs 4 lakh crore, and achieve exports worth Rs 1.1 lakh crore.
Q: How does India’s global manufacturing share compare to China’s?
A: India holds a 2.8% share, while China dominates with 28.8%.
Conclusion
The Budget 2025-26 marks a significant step towards strengthening India’s manufacturing sector and achieving self-reliance. With the launch of the National Manufacturing Mission and targeted initiatives in key sectors, the government aims to enhance India’s global competitiveness, create employment opportunities, and boost economic growth. As India strives to become a global manufacturing hub, these measures are expected to pave the way for a resilient and dynamic industrial ecosystem.