This mission's mandate will include five focus 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
Further boosting the electronics manufacturing industry is the provision of presumptive taxation regime for non-residents who provide services to a resident company that is establishing or operating an electronics manufacturing facility.
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During her Union Budget 2025 speech, Finance Minister Nirmala Sitharaman said the 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”.
This mission’s mandate will include five focus 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. Currently, there are over a crore registered MSMEs, employing 7.5 crore people, and generating 36 percent of the country’s manufacturing and close to 45 percent of the exports.
One of the most significant impacts of this mission will be its ability to reduce India's reliance on imports, particularly in critical areas like EV batteries and semiconductor manufacturing. “Currently, India faces challenges such as high logistics costs and import dependency that hinder its competitiveness on the global stage. The National Manufacturing Mission addresses these issues by promoting local production and encouraging investments in advanced manufacturing technologies,” says Yogesh Pandit, Director (Product Acceleration), FSID. The expanded Production-Linked Incentive (PLI) scheme with a substantial budget allocation of Rs 16,092 crore for FY25, is poised to drive growth in high-tech sectors, creating a robust supply chain that can withstand global disruptions.
During the Budget 2025 speech, the finance minister said this will be building on the National Action Plan 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,” she explained. The scheme is yet to be approved by the cabinet. “This policy could significantly enhance our ability to develop and offer toys that are not only engaging but also embody the values we cherish, making a lasting impact on the global stage,” says Sukriti Mendiratta, founder, Panda's Box.