A Manufacturing Road Map

Over the past decade, the Union government has taken several steps to foster the manufacturing sector, which helps to create decent jobs, including through Make in India, the production-linked incentive (PLI) scheme, and reforms enhancing the ease of doing business, among others.

- NAGESH KUMAR

Carrying forward the policy momentum, the Union Budget for 2025-26 has devoted considerable attention to the manufacturing sector, including through schemes for the micro, small, and medium enterprises (MSMEs) and labour-intensive sectors.

Among the significant steps is the focus product scheme for India's footwear and leather sector covering support for design capacity, component manufacturing, and machinery required for the production of non-leather quality footwear, which may create as many as 2.2 million jobs. It also includes a National Action Plan for Toys that will focus on cluster development, skills, and the manufacturing ecosystem for making high-quality, innovative toys for the local as well as global markets.

Food processing is another sector that is receiving attention. One of the largest producers of cereals, fruits, vegetables, dairy and crustaceans, India is not able to tap the sector's potential for jobs and income creation due to very low levels of processing. This year's Budget proposes the establishment of a new National Institute of Food Technology, Entrepreneurship and Management, and launched a programme to promote processing of fruits and vegetables, as well as a Makhana Board to enhance value-addition.