Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2025-26 on Saturday, unveiled the National Manufacturing Mission aimed at further strengthening the ‘Make in India’ initiative. This move comes as India solidifies its position as a key player in the global manufacturing landscape.
The newly announced mission will focus on clean technology, fostering an ecosystem for solar cell production, EV batteries, and high-voltage transmission equipment manufacturing at the local level. This initiative is expected to reduce import dependence while boosting domestic production and technological innovation.
To support Micro, Small, and Medium Enterprises (MSMEs), the government has enhanced the credit guarantee cover from ₹5 crore to ₹10 crore. Additionally, investment and turnover limits for MSME classification will be increased by 2.5 times and 2 times, respectively, making it easier for businesses to access funding and scale up their operations.
In another significant step, the government will introduce customized credit cards with a ₹5 lakh limit for registered MSMEs, providing much-needed financial flexibility for small businesses.
The Finance Minister Nirmala Sitharaman announced the establishment of Centres of Excellence in Artificial Intelligence (AI) for education, with a total budget allocation of ₹500 crore. These centres will play a crucial role in enhancing AI research, upskilling students, and promoting digital transformation in India's education sector.
The Union Budget 2025-26 prioritizes ten key sectors, including:
Support for MSMEs and export promotion
Rural prosperity and agricultural growth
Financial inclusion and industrial development
Empowering youth, women, farmers, and the economically weaker sections
The government is also set to launch a socio-economic upliftment scheme for urban workers, ensuring better financial security and stability. Additionally, a Social Security Scheme for online platform workers will be introduced to safeguard the interests of gig workers.
In a bid to expand employment opportunities, the government will launch a focused product scheme for the footwear and leather sector. This initiative is expected to create 22 lakh new jobs while significantly boosting exports in the sector.
The Budget Session of Parliament began on January 31, 2025, and will be conducted in two phases:
First Phase: January 31 – February 13
Second Phase: March 10 – April 4
The National Manufacturing Mission, alongside key reforms in MSME credit access, AI research, and social security, is set to drive India's economic growth, generate employment, and make India a global leader in manufacturing.
The Union Budget 2025-26 sets a strong foundation for India's growth by focusing on manufacturing, MSMEs, AI research, and employment generation. The National Manufacturing Mission will boost the ‘Make in India’ initiative by promoting clean tech industries, while enhanced credit support for MSMEs will empower small businesses.
The ₹500 crore investment in AI research and education reflects the government’s commitment to digital transformation, ensuring India stays ahead in the global tech race. Additionally, initiatives like social security for gig workers and job creation in the leather sector highlight an inclusive approach to economic growth.
With a balanced focus on industrial development, financial inclusion, and employment generation, the success of these measures will depend on effective implementation. If executed well, the Budget 2025 has the potential to make India a global manufacturing hub, drive economic resilience, and create new opportunities for businesses and citizens alike.