NEW DELHI: In its effort to strengthen India’s manufacturing sector and achieve self-reliance, the Budget 2025-26 has come up with a series of measures to boost local manufacturing. At the heart of the budget lies the National Manufacturing Mission, a program designed to give a fresh push to industries of all sizes—small, medium, and large.
“The continued impetus to the industrial sector through the new announcement, coupled with increased share of manufacturing activity for India, signals strong growth potential. Along with tax rebates, a focused approach will be key to building a resilient and competitive manufacturing ecosystem.
The government’s sustained emphasis on expanding the market share of manufacturing is encouraging,” said Ashraya Rao, Partner, Khaitan & Co. Industrialist and executive Chairman of Ashok Leyland, Dheeraj Hinduja said the launch of the National Manufacturing Mission will support the sector by providing crucial policy backing, execution plans, and a governance and monitoring framework.
The latest intervention comes as India strives to establish itself as a global manufacturing hub. The Economic Survey 2025 highlighted that India holds only a 2.8% share of global manufacturing, significantly lower than China’s 28.8%, presenting a vast opportunity for growth. Additionally, India has considerable potential to enhance the industrial sector’s contribution to GDP compared to its peer countries.
The sectors to receive special focus in Finance Minister Nirmala Sitharaman budget speech were footwear, battery ecosystem, toy manufacturing and shipbuilding among other things. The FM specified a focus product scheme will be implemented to support the production of non-leather quality footwear, besides the support for leather footwear and products.
As per the government, the scheme is expected to facilitate employment for 22 lakh persons, generate a turnover of Rs 4 lakh crore and exports of over Rs 1.1 lakh crore.