This year’s Budget aligns with the vision of 'Viksit Bharat' (Developed India), aiming for inclusive growth and prosperity across all regions. It emphasizes the government’s development strategy, which includes eradicating poverty, ensuring universal quality education, providing comprehensive healthcare, promoting skilled labor with meaningful employment, increasing women's participation in the economy, and transforming India into a global manufacturing hub.
The budget presents a comprehensive approach to drive agricultural growth, enhance rural prosperity, foster inclusive development, boost manufacturing, support MSMEs, create jobs, invest in innovation, secure energy resources, increase exports, and nurture creativity. At the core of this vision is the 'Make in India' initiative, which is set to strengthen the nation’s manufacturing capabilities, generate employment, and steer India toward becoming a developed country. The allocation of approximately ₹33,000 crores for demand and supply-side incentive schemes in key sectors like electronics, EVs, semiconductors, telecom, and pharma underscores the government's commitment to advancing the manufacturing sector.
A major step toward achieving this vision is the creation of the National Manufacturing Mission, aimed at further strengthening the 'Make in India' initiative across various industries, positioning India as a key player on the global manufacturing stage. This mission will cover small, medium, and large industries, offering policy support, implementation strategies, governance, and a monitoring framework. It will focus on clean technology and create an ecosystem for the local production of solar cells, EV batteries, and high-voltage transmission equipment. The mission will not only enhance the manufacturing sector but also generate significant job opportunities for the nation's youth.
Additionally, the introduction of a presumptive taxation regime for non-residents providing technology and support services to electronics manufacturing facilities in India will reduce tax burdens, making India an attractive destination for global investors in the electronics components and systems sector.
It is important to recognize that the domestic manufacturing industry faces constant pressure from large manufacturing hubs, particularly in Asia, due to cost competition. To address this, it would be beneficial to introduce a 3-5 year roadmap for tariffs on key components used in strategic sectors such as EVs and their ecosystems, semiconductors, defense, electronics, and renewables. This roadmap would provide clarity and stability, helping manufacturers, investors, technology partners, and joint venture collaborators to solidify their mid- to long-term plans for these vital industries.
Sector-Specific Initiatives: Footwear, Leather, and Toys
The government's vision for the toy sector is to position India as a global leader in toy manufacturing. Building on the National Action Plan for Toys, a dedicated scheme will be introduced to develop toy clusters, improve skills, and strengthen the manufacturing ecosystem. As the demand for toys rises both domestically and globally, this transformation offers a substantial opportunity. With policies supporting BIS compliance and import tariffs, India’s toy industry is poised for significant growth. The proposed strategy aims to produce high-quality, innovative, and sustainable toys that proudly bear the 'Made in India' label.
Similarly, the footwear and leather sectors are set for a major boost with the introduction of a focus product scheme. This initiative will enhance the productivity, quality, and global competitiveness of India’s footwear and leather industry. It will offer support for the design capacity and machinery needed to produce both non-leather and leather footwear and products. The scheme is expected to create employment for 22 lakh people, generate a turnover of ₹4 lakh crore, and drive exports exceeding ₹1.1 lakh crore. This strategic approach is designed to revitalize a sector known for its job creation potential while modernizing it for global competitiveness. The government’s focus on these sectors underscores its commitment to preserving and enhancing traditional industries.
Critical Minerals
The government is focused on boosting domestic mining of critical minerals to support the manufacturing of electronics, EVs, and renewable energy equipment. By ensuring the availability of these essential materials within India, this initiative aims to create more job opportunities for the youth.
Additionally, the government recognizes the heavy dependence on neighboring countries for critical minerals, which could pose risks to supply chains for key electric, defense, healthcare, and electronic products, especially in light of shifting global geopolitics.
MSME
The Hon’ble Finance Minister has highlighted MSMEs as a key driver of economic development, and specific reforms have been introduced to ease funding and enhance the ease of doing business. The reclassification of MSMEs with higher investment and turnover thresholds will open up greater access to financial incentives and support for ancillary industries, thereby fostering growth, innovation, and job creation within the sector.
Empowering Entrepreneurs: A Scheme for Inclusivity
To encourage entrepreneurship, a new scheme will be launched to support 5 lakh women, Scheduled Castes, and Scheduled Tribes who are first-time entrepreneurs. This scheme will provide term loans of up to ₹2 crore over the next five years, promoting entrepreneurship and, in turn, job creation.
Conclusion: A Future of Prosperity and Employment
The 'Make in India' initiative is designed to boost domestic manufacturing across multiple sectors, generating substantial employment opportunities. Through these strategic measures, the government is laying the foundation for a future where Indian manufacturing meets both domestic needs and makes a global impact.
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