Budget 2025: Make in India Gets a Boost as Govt bolsters Manufacturing Push

To enhance the government's Make in India initiative, Finance Minister Nirmala Sitharaman declared that the manufacturing program will be reinforced during the budget presentation for 2025-26. She stated, "Our government will establish a national manufacturing mission that will encompass small, medium, and large industries. This mission will provide policy support, execution roadmaps, and a governance and monitoring framework for both central ministries and states."

In line with the government's dedication to environmentally sustainable development, the mission will additionally emphasize the production of clean technologies. Its goal is to improve local value addition and create a strong ecosystem for solar PV cells, electric vehicle (EV) batteries, motors and controllers, electrolysis, wind turbines, high-voltage transmission equipment, and grid-scale batteries.

This drive for sustainable manufacturing will serve as the third engine of growth, propelling investment and innovation within these essential sectors.

The 2024 budget has already taken a major step by expanding the PLI scheme to encompass toys and footwear, raising the total number of covered sectors to 16. The allocation was raised by 89% to Rs 16,092 crore for FY25, up from Rs 8,520 crore in FY24. A significant 38% of the overall allocation was aimed at promoting large-scale electronics manufacturing, underscoring the government's focus on drawing investments and enhancing local production capacities.