Budget 2025: FM announces national manufacturing mission to boost self-reliance
What's the story
In the latest Union Budget, Finance Minister Nirmala Sitharaman has announced a national manufacturing mission.
The initiative is aimed at strengthening the Make in India scheme and encouraging domestic production.
The mission will cover small, medium, and large industries, offering policy support and execution roadmaps for both central ministries and states.
Green initiative
Manufacturing mission to focus on clean technology
The manufacturing mission will also focus on clean technology manufacturing, as part of the Centre's commitment to climate-friendly development.
The goal is to boost domestic value addition and build a robust ecosystem for solar PV cells, electric vehicle (EV) batteries, motors and controllers, wind turbines, high-voltage transmission equipment, as well as grid-scale batteries.
This is expected to drive investment and innovation in these sectors.
Funding boost
Significant increase in PLI scheme allocation
The Budget also extended the Production-Linked Incentive (PLI) scheme to toys and footwear, taking the total sectors covered to 16.
The allocation for the scheme was increased by 89% to ₹16,092 crore for FY25, up from ₹8,520 crore in FY24.
A large chunk of this allocation was aimed at incentivizing large-scale electronics manufacturing.
Sectoral growth
Auto and electronics sectors benefit from increased allocation
The auto and auto components sector witnessed its allocation increase over seven times to ₹3,500 crore from the FY24 revised estimate of ₹483.7 crore.
Allocations for large-scale electronics manufacturing also rose by 36% to ₹6,125 crore, whereas drone manufacturing saw a 72% increase to ₹57 crore.
Other important sectors like IT hardware, textiles, and ACC batteries were also given a boost in funding in the full budget for FY25.
Scenario
Boosting manufacturing growth with PLI scheme
The latest developments highlight the government's dedication to boosting manufacturing growth across 14 priority sectors, including mobile phones, pharmaceuticals, automobiles, and electronics.
The PLI scheme seeks to attract investments, improve efficiency, and make Indian companies globally competitive.
The schemes play a crucial role in the Atmanirbhar Bharat initiative, focusing on self-reliance and sustainable economic growth.
The government's measures are expected to strengthen supply chains, draw global investments, and establish India as a manufacturing powerhouse.