As anticipated by experts, the manufacturing industry received a significant boost from the central government during the Union Budget 2025-26 on Saturday (February 1).

Whether it’s the proposal to introduce a National Manufacturing Mission, benefitting cleantech manufacturing and MSMEs or an exemption of basic customs duty (BCD) in some critical materials used in lithium-ion (Li-ion) batteries, the Nirmala Sitharaman-led 8th consecutive budget gave some much-needed boost to various most sectors in manufacturing.

“Our Government will set up a National Manufacturing Mission covering small, medium and large industries for furthering ‘Make in India’ by providing policy support, execution roadmaps, governance and monitoring framework for central ministries and states,” said the finance minister during the budget.

She also emphasised that given the government’s commitment to “climate-friendly” development, the proposed mission will support cleantech manufacturing to improve domestic value addition and build the ecosystem for solar PV cells, EV batteries, motors and controllers, electrolysers, wind turbines, high voltage transmission equipment and, grid-scale batteries.

The mission has five key focus areas—enabling the ease and cost of doing business, a future-ready workforce for in-demand jobs, a vibrant and dynamic MSME sector, availability of technology, and quality products.

Key Announcements To Boost Manufacturing

In fact, supporting MSMEs has also been a major focus area of the government during this year’s budget. The finance minister said that the investment and turnover limits for the classification of all MSMEs, including those in manufacturing, will be enhanced by 2.5X and 2X, respectively.

“Currently, over 1 Cr registered MSMEs, employing 7.5 Cr people, and generating 36% of our manufacturing, have come together to position India as a global manufacturing hub. With their quality products, these MSMEs are responsible for 45% of our exports,” said Sitharaman while making the announcement, adding that the step would these MSMEs achieve higher efficiencies of scale, technological upgradation, and better access to capital.

However, it is pertinent to note that the National Manufacturing Mission and the steps to be undertaken as part of it lacked any proper budgetary allocation and roadmaps for implementation.

Despite that, industry leaders are largely positive given the preliminary promises under the mission are expected to not only benefit the........

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