LOCAL-MADE TO RIDE OUT GLOBAL TURMOIL

The idea is to position India as a global manufacturing and sourcing destination by easing input costs, compliance

- Dhirendra Kumar

The Union budget adopted a manufacturing-led strategy to support exports and strengthen India's integration into global supply chains at a time when geopolitical tensions and trade disruptions are reshaping sourcing decisions worldwide.

Finance minister Nirmala Sitharaman said the government's focus would be on lowering input costs, easing compliance and improving logistics and trade facilitation to position India as a global manufacturing and sourcing destination, rather than relying solely on incentives.

A key plank of the export push is targeted customs relief for labour-intensive sectors. The budget raised the limit for duty-free imports of specified inputs used for processing seafood exports from 1% to 3% of the free-on-board value of the previous year's export turnover, a move aimed at easing cost pressures in the marine sector.

Mint had reported on 31 January that the Budget was expected to mark a reset, shifting from incentives and protection towards removing everyday frictions.

Manufacturing is a central pillar of India's economic growth, contributing 16-17% of GDP and employing over 27 million workers.