The Indian government has announced a National Manufacturing Mission to support small, medium, and large industries, with a strong emphasis on clean tech manufacturing. The initiative will focus on ease of doing business, upskilling for in-demand jobs, MSME growth, technological advancements, and quality production.

Aiming to increase manufacturing’s share in GDP from 17% to 25%, the mission will promote domestic value addition in solar PV cells, EV and grid-scale batteries, electrolysers, wind turbines, and high-voltage transmission equipment. It is also seen as a step to counter China’s dominance in the clean tech sector, where it controls 80% of global battery production and solar component supply.

Additionally, the budget allocates Rs 88.85 billion under the PLI scheme for smartphone manufacturing, reinforcing India's position as a key electronics manufacturing hub. Apple, Samsung, and Google have already ramped up production under this initiative, driving India’s smartphone exports to become the country’s second-largest export category.

The Budget has also introduced a Focus Product Scheme for the footwear and leather industry, aiming to create 2.2 million jobs and generate Rs 4 trillion in turnover. Overall, these measures signal a strong push for industrial self-reliance, job creation, and export growth in India.

Baba Kalyani, Chairman & MD of Bharat Forge Ltd, opined, “Congratulations Madam Finance Minister for an excellent budget with strong focus on the inherent strengths of Indian economy and key economic drivers of Viksit Bharat2047.The 3M's that bring me cheer-Middle Class, MSMEs and Make in India! I also welcome the launch of the Manufacturing Mission, the Exports Promotion Mission and the Nuclear Energy Mission. Initiatives such as Cancer Care Centres in every district across the country will further modernise the Healthcare and Medical Infrastructure across the country. Special development measures to boost agriculture productivity, self-reliance in pulses and leveraging 'India Post' to deliver financial services are expected to drive Rural Growth!”

Kalyani continued, “What is noteworthy is a special mention of revamping Bilateral Investment Treaty Model - a sign of following a India First model amidst heightened global volatility.The hallmark of successive governments under the leadership of Hon'ble Prime Minister has been continued thrust on ease of doing business, fiscal prudence and investment led growth.Today's Budget continues to deliver on these three levers, and I am confident that these initiatives collectively signal a robust blueprint for India's progressive and inclusive development.”

Ravichandran Purushothaman, President, Danfoss India, remarked, “The Union Budget 2025 presents a bold vision for India’s industrial transformation, emphasising clean energy, infrastructure modernisation, and global manufacturing competitiveness. The increased focus on food processing, industrial growth, and energy transition is a welcome move, reinforcing India’s position as a global manufacturing and innovation hub. The Rs 1 trillion Urban Challenge Fund and reforms in infrastructure and warehousing for air cargo will significantly strengthen cold chain logistics, benefiting high-value agri-exports and processed food industries. The National Institute of Food Technology in Bihar is a notable imitative towards promoting food innovation and entrepreneurship in the region, ensuring value addition and sustainability across the supply chain.”

 

Purushothaman adds, “The government’s commitment to energy security through the Nuclear Energy Mission and Rs 200 billion R&D investment in Small Modular Reactors (SMRs) marks a decisive step toward industrial decarbonisation. Strengthening intra-state transmission capacity and incentivising state-level reforms in power distribution will further accelerate India’s clean energy transition. At Danfoss, we are committed towards accelerating India’s sustainability goals through our advanced energy-efficient solutions in industrial automation, cooling, and heating. As India advances its clean energy and industrial transformation agenda, we look forward to contributing through our expertise in decarbonisation, energy storage, and next-generation sustainable technologies.”

Neeti Sharma, CEO, TeamLease Digital, commented, "The announcement of a National framework to promote growth of GCCs in Tier-2 cities will transform India’s economic landscape, thereby creating a balanced economic development across States.  As GCCs are projected to generate millions of jobs, this framework will facilitate the growth of formal employment opportunities for the youth, capitalise on talent availability in our Tier 2 & 3 cities, upgrade infrastructure and make these cities more attractive for global businesses.  By investing in skill development, improving urban infrastructure, and simplifying regulations, India is creating the right environment for GCCs to thrive. This move strengthens India’s position as a global hub for digital services while ensuring balanced and inclusive economic growth."

Kuldeep Bhan, Group President, Global Metallurgy Business, Neterwala Group, said, “The Union Budget 2025 lays a strong foundation for India’s manufacturing growth with the announcement of the National Manufacturing Mission. By prioritising key areas such as ease of doing business, a future-ready workforce, empowerment of large companies and MSMEs, technology access, and product quality, this initiative will accelerate India’s journey toward becoming a global manufacturing hub. The government’s commitment to strengthening domestic manufacturing capacities and integrating Indian industries with global supply chains is a welcome step that will enhance the country’s competitiveness.

At Neterwala Group, we appreciate this visionary approach and look forward to leveraging these policy reforms to drive innovation, scale operations, enhance our skilled workforce, and contribute to India’s economic progress. Strengthening the ‘Make in India’ movement will not only generate employment but also position India as a key player in high-value, quality manufacturing on a global scale. This budget fuels optimism for a resilient and self-reliant manufacturing ecosystem, and we are excited to be part of this transformative journey."

Naoya Nishimura, CEO- India and Africa, Musashi, said, "The Union Budget 2025 marks a decisive step toward strengthening India's EV ecosystem by accelerating the localisation of critical components like batteries, motors, and controllers. The government's commitment to expanding domestic manufacturing capabilities aligns with Musashi's vision for innovation-driven, sustainable mobility. With these initiatives, India is poised to become a global hub for clean-tech manufacturing, reducing import dependency and fostering a self-reliant future for electric mobility."

S Sunil Kumar, Country President, Henkel Adhesive Technologies India, noted, “The Union Budget 2025, with its emphasis on inclusive development, accelerated growth, and private sector investments, marks a pivotal moment in strengthening India’s industrial and economic foundation. The rationalisation of customs tariffs will enhance India’s global competitiveness, particularly benefiting manufacturers, while the focus on MSMEs—crucial contributors to India’s GDP and exports—will empower them to diversify offerings and expand internationally. The strategic and forward-thinking approach fosters a pro-business environment that encourages both FDI and domestic investment.”

Kumar added, “The ambitious 100 GW nuclear target represents a bold commitment to sustainable growth, driving investments in infrastructure, technology, and human capital, while positioning India as a leader in clean energy on the global stage. Honourable Finance Minister Nirmala Sitharaman has also emphasised the government’s commitment to strengthening the domestic electronics equipment industry, creating significant opportunities for youth. The government's emphasis on skill development across industries, particularly in the nuclear and footwear sectors, will not only create thousands of jobs but will also build a robust workforce prepared to meet future challenges. With the footwear sector alone employing over 4 million people, the focused scheme will drive significant job creation and enhance India’s position in the global supply chain. Lastly, the restructuring of income tax slabs will enhance disposable income, providing greater purchasing power to consumers. By directly benefiting the middle class, this policy will act as a catalyst for broader consumption, supporting businesses and driving momentum across key sectors.”

Arun Misra, CEO, Hindustan Zinc Limited noted, “The budget presented by the Finance Minister is designed to accelerate growth, deeply rooted in the journey of our nation's holistic development. The increased outlay for infrastructure spending marks a new era in India's infrastructure growth which will undoubtedly provide impetus to other sectors as well. Support for states through interest-free loans to the tune of Rs 1.5 trillion and the creation of an urban challenge fund of Rs 1 trillion for infrastructure projects, presents an opportunity for the manufacturing sector to develop new technologies and invest in innovation. The modernisation of airports, ports, and greenfield developments further galvanises India’s infrastructure backbone, driving both employment for the youth and GDP growth.”

 

Misra further commented, “The mining reforms introduced in the budget position India as a key player in the critical minerals sector. The sharing of best practices and institutionalising a State Mining Index for minor minerals along with a policy for recovery of critical minerals from tailings will enable circularity and innovation within the industry. As the country transitions to a low-carbon economy, these minerals will play a pivotal role, with metals forming the foundation of this shift. The announcement of the National Manufacturing Mission and measures to support MSMEs with access to credit & export assistance will create a robust domestic production ecosystem that will be integrated into global supply chains. As India’s largest and the world’s second-largest integrated zinc-lead producer, we are optimistic about the transformative impact of these initiatives which will enhance the competitiveness of India’s critical minerals sector while supporting industries such as electric vehicle manufacturing and renewable energy storage.”

Abhishek Mundada, Partner, Dhruva Advisors, opined, “Presumptive taxation regime introduced for non-residents providing services/technology to domestic company operating electronics manufacturing facility or a connected facility for manufacturing or producing electronic goods subject to fulfilment of prescribed conditions. 25% of gross revenue would be deemed as income and tax rate @ 35% (plus applicable surcharge and education cess). thus effective tax rate to be 8.75% (excluding surcharge and education cess). This shall give philip to semiconductor and electronic manufacturing industry.”