Govt Plans New Clusters to Fire Up Manufacturing

Tax sops, roadmap to build factories along infrastructure projects likely in budget

- Rhik Kundu & Subhash Narayan

The first advance estimate released by the statistics ministry on Tuesday. "There have been discussions on boosting the manufacturing sector, with plans for strategically placed clusters near infrastructure hubs, not only creating jobs but also positioning the country as a global manufacturing hub," one of the officials cited above said.

"By aligning manufacturing clusters with key infrastructure projects, the aim is to create seamless value chains that can attract both domestic and foreign investments, giving a significant boost to the economy," the official added.

The second official said the government may also look to ease procedural hurdles, rectify tax anomalies, and recalibrate customs duties in the budget for 2025-26. "The government is looking into measures (from a policy perspective) to help expand and deepen domestic production, reduce reliance on imports, and promote value addition in sectors currently dominated by assembling imported components, aligning with the broader push to strengthen India's manufacturing ecosystem," this official said.