India Union Budget 2025 Key Updates - Industrial and Manufacturing

The Union Budget 2025 has struck the right notes for India Inc., with a slew of measures aimed at boosting consumption and encouraging private sector capital expenditure. The government's continued focus on 'Make in India' is expected to increase domestic production, reduce imports, and create jobs, contributing to long-term growth. Additionally, the proposed reforms for greater ease of doing business in India will help facilitate more international and domestic investment.

The budget has prioritised the growth of the Industrial and Manufacturing sector by introducing enhanced financial schemes for MSMEs, boosting manufacturing incentives, and making substantial investments in infrastructure. It has focused on high-employment industries such as electronics, automotive, and textiles to promote growth, improve competitiveness, and increase domestic production, particularly in electronics and electric vehicles.

Further, the budget has introduced proposals for incentives to attract investment, streamline GST compliance, and reduce customs duties on essential materials and machinery. These reforms aim to address the inverted duty structure and foster domestic manufacturing, making India an attractive hub for both local and foreign investments.

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