The Union Budget 2025-26 has drawn widespread praise from industry leaders, who view its proposals as key to fostering innovation, job creation, and sustainability within India’s manufacturing sector.
Finance Minister Nirmala Sitharaman, in her budget presentation on Saturday, unveiled the National Manufacturing Mission under the “Make in India” initiative, which aims to bolster industries across different scales — small, medium, and large.
In a bid to strengthen India's position as a global manufacturing hub, the government also announced a scheme promoting high-quality, sustainable toy production.
Deepak NG, Managing Director of Dassault Systemes India, underscored the importance of a robust manufacturing base for the nation’s economic future.
“The National Manufacturing Mission is a significant move toward self-reliance, accelerating clean-tech and smart manufacturing while ensuring India’s deeper integration into global supply chains,” he remarked.
He also highlighted the government's investment focus on electric vehicle (EV) batteries, solar PV cells, and high-voltage transmission systems, noting their potential to drive sustainability while creating avenues for innovation and growth.
Also read: FM Sitharaman announces Nuclear Energy Mission for 2047 in Budget 2025
Focus on energy and critical materials
Sanjay Choudhari, Chairman of SBL Energy, expressed confidence in the transformative potential of the National Manufacturing Mission.
He remarked, “This initiative will strengthen small, medium, and large industries, creating a robust supply chain for mining and infrastructure and enhancing domestic production of critical materials.”
He added that the initiative would not only reduce India's import dependency but also bolster its energy security.
Technological advancement and job creation
Arpan Ghosh, Founder and Director of Gamma Rotors, lauded the government’s emphasis on high-tech industries such as drones and electronics.
“This investment will not only boost the drone industry but also help scale innovations in areas such as surveillance and energy-efficient drone systems,” he said.
He projected that the drone sector alone could generate over a million jobs by 2025, positioning India as a leader in advanced manufacturing technologies.
Enhanced collaboration through National Centres of Excellence for skilling would empower the country's workforce, Ghosh noted, accelerating India's transition to an innovation-driven industrial ecosystem.
Support for MSMEs and sustainability goals
Saurabh Agarwal, Vice President and General Manager of Avery Dennison South Asia, welcomed the budget’s focus on sustainability and MSME development.
“The reduction in tax slabs is expected to drive consumer spending, which will positively impact sectors like packaging and labelling,” he said.
He further noted that improved manufacturing infrastructure would enable MSMEs to scale operations and innovate more efficiently.
Bharat Gite, Managing Director and CEO of Taural India, praised the enhanced credit guarantee scheme and machinery financing provisions, predicting significant growth in Tier II and Tier III regions.
“The Union Budget 2025 sets a decisive course for India’s manufacturing sector by strengthening MSMEs, fostering domestic production, and enhancing global trade competitiveness,” Gite observed.
Skilling India for industry 4.0
Recognising the importance of workforce development, the government has earmarked Rs 500 crore for the expansion of Atal Tinkering Labs and AI education initiatives.
Deepak NG highlighted this focus as crucial for preparing India’s youth for the industries of the future. “The focus on STEM and AI education will prepare India’s youth to lead in industries of the future,” he said.
Industry stakeholders expressed optimism about India’s journey toward a circular economy, with initiatives aimed at promoting clean-tech manufacturing and innovation in sustainable packaging.
The budget is seen as setting a new benchmark for economic growth while ensuring that India's manufacturing ecosystem is future-ready.
Also read: Greenfield airports, canal project in Bihar get major push in budget
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