With Budget 2025-26 on the horizon, India's manufacturing sector is anticipating key policy reforms to boost growth, enhance global competitiveness, and strengthen MSMEs. Industry leaders are calling for an expansion of Production-Linked Incentive (PLI) schemes, tax cuts on consumer durables, and increased support for sustainable manufacturing.
Experts also emphasize the need for simplified regulations, infrastructure upgrades, and incentives for emerging technologies like drones and GIS. As the government prepares to unveil its fiscal roadmap, expectations are high for measures that will drive industrial expansion and position India as a global manufacturing powerhouse.
Abhishek Dua, the CEO and co-founder of Showroom B2B, has pointed out that the government should extend the Production-Linked Incentive (PLI) schemes. Dua says this proposed expansion should increase investments and decrease reliance on imports in highly sought-after areas like retail. India expects this action to improve its global market position while helping the country realize its export-driven development goal.
In addition, the sector urged that more should be done to ease the business environment so that MSMEs can strengthen their position in the economic value chain. Simplified applications and performance benchmarks are expected to enhance the ability of small and medium enterprises to grow and develop, thus enhancing the industrial base. The proposed changes will create a business environment that helps local manufacturers increase their competitive power internationally.
Experts from the industry have also been calling for major changes in the tax structure for the next budget. The reduction in GST on consumer durables has been targeted to reduce the cost of production of locally manufactured goods. Such adjustments could lead to an increase in consumer expenses, which would positively impact domestic producers. Mr Simarpreet Singh of Hartek Group has applauded the government's initiatives regarding renewable energy, especially solar energy, and stressed the need to sustain the support through PLI schemes and enhancing infrastructure.
Nileshkumar Kukalyekar the Business Director at Envalior, advocates for increased investment in sustainable manufacturing. The business director asks the government to provide financial benefits for using recycled materials while investing in new green technology research. Creating a circular economy system will speed India's move toward cleaner energy sources and help industries meet worldwide environmental standards.
Ankit Kumar, CEO of Skye Air proposed that the budget should also focus on tax exemption or reduce the GST on drone services, manufacturing, or even maintenance of these drones. This would reduce operating costs and make the technology more affordable for the business world. There is also an increasing demand for better policies for firms working in the Special Economic Zones (SEZs), which may offer the required and conducive environment for further innovation.
Integration of technological progress with fundamental necessities is an essential component. The CEO of ARAHAS Technologies, Saurabh Rai, stresses that Geographic Information Systems (GIS) and space technology remain imperative sectors for disaster management solutions and land usage with resource optimization in urban development. These sectors would benefit from more money since it would strengthen technology development while solving basic economic and environmental matters.