The Union Budget 2025-26 introduces the National Manufacturing Mission to boost “Make in India,” covering industries of all sizes (across Small, Medium, and Large industries).
The initiative aims to provide a structured policy framework, execution roadmap, governance model, and monitoring system for both central ministries and state governments. This mission will enhance industrial growth across small, medium, and large enterprises, reinforcing the “Make in India” vision.
It covers small, medium and large industries for furthering “Make in India”. It will lay emphasis on five focal areas. 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. Under this Mission, the government will provide policy assistance, implementation roadmaps, and governance and monitoring structures for central ministries and states.
It aims to enhance domestic value addition and build a robust ecosystem for solar PV cells, electric vehicle (EV) batteries, motors and controllers, electrolysis, wind turbines, high-voltage transmission equipment, and grid-scale batteries.
The Mission will also support Clean Tech manufacturing. It will support design capacity, component manufacturing, and machinery required for the production of non-leather quality footwear, besides the support for leather footwear and products.
In addition to the mission, the credit guarantee cover is to be enhanced for MSMEs to Rs 10 crore from Rs 5 crore and the investment and turnover limit for classification of all MSMEs will be enhanced to 2.5 and 2 times.
The National Manufacturing Mission is built on 5 core pillars to accelerate industrial progress:
Additionally, the mission will provide strategic support for Clean Tech manufacturing, boosting domestic value addition in sectors such as solar PV cells, electric vehicle (EV) batteries, motors and controllers, electrolyzers, wind turbines, high-voltage transmission equipment, and grid-scale batteries.
Recognizing the potential of labor-intensive industries, the government has introduced a Focus Product Scheme to enhance productivity, quality, and global competitiveness in India’s footwear and leather industry.
This initiative aims to make India a leading manufacturer in the global footwear and leather industry.
To position India as a global hub for toy manufacturing, the government has announced a National Action Plan for Toys.
Key Focus Areas:
The initiative aligns with India’s push for self-reliance (Atmanirbhar Bharat) and aims to reduce dependence on imports while promoting domestic toy manufacturers.
The Union Budget 2025-26 also prioritizes food processing as part of the broader economic strategy. A National Institute of Food Technology, Entrepreneurship and Management will be established in Bihar, focusing on:
This move is expected to boost food processing activities and create a stronger ecosystem for agribusiness.
The ‘Make in India’ initiative was launched globally in September 2014 as a part of India’s renewed focus on Manufacturing. The objective of the Initiative is to promote India as the most preferred global manufacturing destination. Since the launch of this landmark initiative, the Government of India has taken several reform initiatives to create an enabling environment for providing an impetus to manufacturing, design, innovation, and startups.
India has emerged as the fastest-growing economy globally. India’s rate of growth of 7.5% is accelerating and it remains an oasis of growth in the midst of a subdued economic landscape across the world.
The Hon’ble Prime Minister has given impetus to growth with several innovative initiatives such as “Make in India”, “Digital India”, “100 Smart Cities” and “Skill India”.
The Make in India initiative aims to make India an integral part of the global supply chain. It is about making Indian companies excel in a globalized workspace. India has vigorously opened up its economy – Defence, Railways, Construction, Insurance, Pension Funds, and Medical Devices have all been rapidly opened up for Foreign Direct Investment. India today is one of the most open economies in the world.
In order to achieve this, the Government of India has taken up a series of measures to radically improve the Ease of Doing Business. Its objective – make the regulatory environment easy and simple for business to flourish. It has effectively used technology to converge and integrate departments. 14 services are integrated with the eBiz portal which will function as a single window portal for obtaining clearances from various government agencies.
The 4 pillars of the Make in India initiative are: New Mindset, New Sectors, New Infrastructure, and New Processes. Hence, the Make in India initiative not only aims to boost the manufacturing sector but also other sectors.
Atmanirbhar Bharat, which translates to ‘self-reliant India’, is a phrase the Prime Minister of India Narendra Modi, and, his government (BJP, Bhartiya Janta Party) used and popularized in relation to the country’s economic development plans. The phrase is an umbrella concept for the BJP’s plans for India to play a larger role in the world economy, and for it to become more efficient, competitive, and, resilient.
Modi has used the English phrase since 2014 about national security, poverty, and digital India. The first popular use of the phrase in Hindi was Atma Nirbhar Bharat Abhiyan (Self-Reliant India Mission) during the announcement of India’s COVID-19 pandemic economic package in 2020.
Since then, the phrase has been used by the Ministry of Consumer Affairs, Food and Public Distribution, the Ministry of Education, and, the Ministry of Defence in press releases, statements, and policies. The government has also used the phrase concerning India’s new National Education Policy, and, the 2021 Union budget of India. The concept under Modi’s premiership has been adapted from earlier uses of the phrase in the Indian sub-continent.
In 2022, Union Home Minister Amit Shah acknowledged slogans such as “Atmanirbharta”, “Make in India” and “vocal for local” were adapted from Gandhi’s efforts towards Swadeshi. Pre-independence aspirations that had been forgotten are now being revived and adapted, and are being put into practice.
To move forward with “Make in India” and the National Manufacturing Mission, India needs to focus on improving infrastructure, addressing skill gaps, streamlining regulations, promoting innovation, targeting key sectors with high potential, and actively engaging with global players to attract foreign investment while also emphasizing sustainability and digital integration in manufacturing processes.
Key areas to focus on:
Challenges to overcome:
By addressing these challenges and focusing on the key areas mentioned above, India can significantly enhance its manufacturing capabilities and achieve the vision of becoming a global manufacturing powerhouse through “Make in India” and the National Manufacturing Mission.
Disclaimer: the above-mentioned article is based on information from the Press Information Bureau of India, and Wikipedia.
Explained: National Manufacturing Mission Table of Contents Inspiration Study Circle – Explained: National Manufacturing Mission The Union Budget 2025-26 introduces the National Manufacturing Mission to
Explained: Union Annual Budget 2025- 26 Table of Contents Inspiration Study Circle Explained: Union Annual Budget 2025- 26 The Union Budget for the financial year
Explained: Space Docking by India Table of Contents Inspiration Study Circle Explained: Space Docking by India India has recently made significant strides in space docking
100 Days Strategy for UPSC 2025 Prelims Table of Contents ISC- 100 Days Strategy for UPSC 2025 Prelims “Start your Preparation with ISC” 100 Days
Uttarakhand implements Uniform Civil Code Table of Contents Inspirations Study Circle Uttarakhand implements Uniform Civil Code Uttarakhand implements Uniform Civil Code Uttarakhand is the first state
How to Crack UPSC 2025 Exam? Table of Contents Inspiration Study Circle How To Crack the UPSC 2025 Exam? The Union Public Service Commission conducts