Growth Sector India 2026- Manufacturing and 'Make in India'-Policy level reforms double-digit GDP growth. 5–10 years of tax holidays for companies setting up manufacturing units

 Policy level reforms double-digit GDP growth 

 

UNION BUDGET 2025-26 -“MAKE IN INDIA”

The National Manufacturing Mission will lay emphasis on five focal areas i.e. ease and cost of doing business; future ready workforce for in-demand jobs; a vibrant and dynamic MSME sector; availability of technology; and quality products.

The Mission will also support Clean Tech manufacturing and aims to improve domestic value addition and build the ecosystem for solar PV cells, EV batteries, motors and controllers, electrolyzers, wind turbines, very high voltage transmission equipment and grid scale batteries, the Union Finance Minister added.

The Finance Minister also outlined measures for Labour-Intensive Sectors, adding that Government will  undertake specific policy and facilitation measures to promote employment and entrepreneurship opportunities in labour-intensive sectors.

The Union Minister specified that to enhance the productivity, quality and competitiveness of India’s footwear and leather sector, a focus product scheme will be implemented. The Union Finance Minister further informed that the scheme will support design capacity, component manufacturing, and machinery required for production of non-leather quality footwear, besides the support for leather footwear and products. The scheme is expected to facilitate employment for 22 lakh persons, generate turnover of Rs. 4 lakh crore and exports of over Rs. 1.1 lakh crore.

 National Action Plan for Toys to be implemented to make India a global hub for toys. The scheme will focus on development of clusters, skills, and a manufacturing ecosystem that will create high-quality, unique, innovative, and sustainable toys that will represent the 'Made in India' brand, the Minister added.

 

Support for food processing,- National Institute of Food Technology, Entrepreneurship and Management in Bihar. The institute will provide a strong fillip to food processing activities in the entire Eastern region. This will result in enhanced income for the farmers through value addition to their produce, and skilling, entrepreneurship and employment opportunities for the youth.

Ref/PIB/2098392/01.02.2025

Manufacturing and 'Make in India'

• Focus Areas: Electronics, defense, textiles, and renewable energy equipment.
• Initiatives:
  • Production-Linked Incentive (PLI) Schemes: Extended to sectors like automotive, solar modules, and drones.
  • Electronics manufacturing expected to touch $300 billion by 2026.
• Projections:
  • Manufacturing growth rate: ~10-12% annually.
  • Contribution to GDP: ~22% (from ~17% in 2023).
   

 

  Policy level reforms double-digit GDP growth

Make in India

1. PLI Scheme Expansion: Extend Production-Linked Incentives (PLIs) to high-potential industries such as pharmaceuticals, electronics, and renewable energy.
2. Skill Development for Manufacturing: Launch vocational training programs for skill enhancement aligned with industry 4.0 requirements.
3. Local Procurement Norms: Mandate higher local content in public procurements across sectors like defense and construction.
4. Tax Holidays for Manufacturing Hubs: Offer 5–10 years of tax holidays for companies setting up manufacturing units in underdeveloped regions.