The Union Budget 2025-26 has ushered in transformative reforms across multiple sectors, with a primary focus on driving economic growth, enhancing productivity, and fostering sustainability. These initiatives are poised to significantly impact the economy by offering sector-specific support, addressing long-term challenges, and creating a favorable environment for growth. Among the key highlights are the emphasis on manufacturing, the Make in India initiative, and exports.
Manufacturing: A Step Towards Self-Reliance
The budget’s focus on manufacturing is a positive step toward self-reliance. The government’s mission for manufacturing, particularly under the Make in India initiative, aims to reduce import dependency and increase exports. A notable mention was the National Medical Device Policy 2023, which seeks to encourage investments in the manufacturing of medical devices. With imports expected to cross ₹75,000 crore, a robust push for domestic manufacturing is essential to reverse the trend and promote exports.
Reducing the Cost and Ease of Doing Business
The National Manufacturing Mission is expected to contribute significantly by reducing the variability of ease and cost of doing business across states. By implementing a cohesive framework, policy, governance, and execution roadmap, the mission aims to disperse the manufacturing footprint across India, thus fostering inclusive development. The emphasis on clean tech manufacturing, driven by the carbon border adjustment mechanism, underscores the importance of sustainability in manufacturing.
Exports: The Fourth Engine of Growth
The budget rightly identifies exports as the fourth engine of growth for the country. With initiatives aimed at supporting the export sector, including enhancing credit flow, making factoring attractive, and addressing non-tariff measures, the government is keen on integrating India into the global value chain. The introduction of a business trade network to facilitate digital trade is a significant step toward addressing challenges faced by exporters.
Leveraging External Factors
Global developments present opportunities for India, particularly in supply chain diversification post-COVID. India is increasingly being viewed as an alternative to China in the manufacturing zone. To fully capitalize on this potential, it is crucial to enhance factor productivity and adopt a sector-focused market approach. By developing capabilities and competitive manufacturing, India can strengthen its position in the global market.
Skilling for the Future
A skilled workforce is imperative for driving the manufacturing and export sectors. The budget’s allocation for Skilling initiatives, including the establishment of national centers for Skilling and AI excellence, is a step in the right direction. By focusing on developing grassroot innovation and thinking, these initiatives aim to enhance productivity, quality, and excellence in the workforce.
Conclusion
The Union Budget 2025-26 lays a strong foundation for economic growth, with its emphasis on manufacturing and exports. By addressing key challenges and fostering an environment conducive to growth, the budget aims to propel India toward self-reliance and global competitiveness. With the right execution and support, these initiatives have the potential to transform India’s economic landscape.
Leave a Reply