The Indian government has announced a National Manufacturing Mission to support small, medium, and large industries, with a strong emphasis on clean tech manufacturing. The initiative will focus on ease of doing business, upskilling for in-demand jobs, MSME growth, technological advancements, and quality production.
• Aiming to increase manufacturing’s share in GDP from 17% to 25%, the mission will promote domestic value addition in solar PV cells, EV and grid-scale batteries, electrolysers, wind turbines, and high-voltage transmission equipment.
• The goal is to boost domestic value addition and build a robust ecosystem for solar PV cells, electric vehicle (EV) batteries, motors and controllers, wind turbines, high-voltage transmission equipment, as well as grid-scale batteries.
Mobility Magazine has spoken to the industry veterans who shared their insights on the opportunities for India at the global level and shared their views on the measures to create a favourable ecosystem for the electronics industry, driving growth, creating jobs, and positioning India as a global manufacturing hub.
Mr. Prachir Singh, Senior Analyst, Counterpoint starts the conversation, “The government has fully exempted customs duty on multiple capital goods and machinery necessary for lithium-ion battery production, which is crucial for mobile phones and electric vehicles (EVs) alike. This move will likely boost domestic battery manufacturing and reduce our reliance on exports. The budget continues to support various PLI schemes. The total incentive outlay for 2025-26 for all sectors under the PLI schemes is set at ₹19,500 crore. Out of this, ₹8,885 crore is allocated to large-scale electronics manufacturing (also known as mobile phone PLI scheme). The PLI schemes have been a big success for the government and have paved the way for increased manufacturing in the country, especially the mobile phone PLI. The government announced increased turnover thresholds and enhanced credit access for MSME companies. For micro, small, and medium enterprises, the turnover limit has been doubled. The credit guarantee cover for micro and small enterprises has also been doubled. In addition, the government announced provision for term loans up to ₹20 crore for export-oriented MSMEs. The government recognizes the importance of the MSME sector in creating jobs and these announcements will help expand this sector.”
Mr. Avneet Singh Marwah, CEO, SPPL, a Kodak and Blaupunkt brand Licensee says, “We appreciate the Honourable Finance Minister’s efforts, such as the reduction of income tax up to Rs 12 lakh and the formation of a high-level committee for regulatory reforms, which help enhance governance. However, the recent reduction in customs duties to nil on open cells and components manufacturing applicable only to industries with bonded manufacturing plants, creates an uneven playing field for TV manufacturers without access to such facilities. This policy is not welcomed by the broader TV manufacturing industry, and for true growth, these benefits should be extended more equitably across the sector. Additionally, the government’s National Manufacturing Mission, which will support small, medium, and large industries with policy backing and a governance framework, is a positive step toward fostering a more inclusive and competitive manufacturing ecosystem.”
“The Union Budget 2025 reinforces the government’s push for domestic electronics manufacturing under the ‘Make in India’ initiative. The revision in Basic Customs Duty (BCD)—increasing duty on interactive flat panel displays to 20% while reducing it to 5% for open cells and other components—is a step towards encouraging local value addition. However, to truly build a self-sufficient ecosystem, greater infrastructure support and phased policy interventions will be essential for large-scale LED panel manufacturing in India. The Production Linked Incentive (PLI) scheme remains a strong enabler for investment in this sector, but long-term success will require sustained efforts in technology development and supply chain strengthening. On the consumption front, the government’s decision to forego ₹1 lakh crore in personal income tax is expected to spur demand in consumer durables, making advanced electronic products more accessible to Indian consumers. With a mix of strategic incentives and demand-driven growth, India’s electronics industry is well-positioned for the next phase of expansion, provided manufacturing infrastructure continues to evolve in tandem with policy measures,” says Mr. Saket Gaurav, Chairman & MD, Elista.
Mr. A. Gururaj, Managing Director, Optiemus Electronics Ltd, said, “The Union budget has rightfully given impetus on boosting the purchasing power of a large population with Tax relaxation and support to Agriculture and farming community. We firmly believe that with more money in hands farmers’ capability to adopt new technologies like Drones significantly improves and helps grow the market faster. For electronics manufacturing, the relaxation in Basic Custom duties for certain components is a positive step and a continuation of earlier policy initiatives and will boost indigenous manufacturing. We welcome the union budget in letter and spirit as both developments positively impact the Optiemus Group. We look forward to continuing to support the growth of our economy with our efforts.”
“The elimination of Basic Customs Duty on key components like PCBAs, camera modules, connectors, and USB cables is a masterstroke! For manufacturers, this means significant cost savings on imports, which will directly impact our production costs and ultimately benefit consumers. What truly excites me is how this tie into our journey. Having spent a decade in electronics manufacturing, I’ve never seen such bold moves to strengthen our domestic capabilities. This BCD exemption, coupled with other initiatives, shows clear intent to boost local manufacturing while optimizing costs. The government has taken strategies like 83% boost in semiconductor funding (₹7,000 cr), 55% increase in mobile PLI scheme (₹9,000 cr), complete removal of 2.5% BCD on critical components. Looking at how we’ve already doubled our electronics production to $115B in just six years, these initiatives are perfectly timed. With global players like @Apple leading our market (23% share!), we’re no longer just participating in the global supply chain – we’re becoming indispensable to it. To my fellow manufacturing leaders this is our moment to innovate, scale, and show the world what Indian electronics manufacturing can achieve. The foundation is set – now it’s time to build,” opines Ms. Nikita Kumawat, Managing Director of Brandworks
Mr. Mohan Lal Choudhary, CEO of SNT Telinet Private Limited said, “India’s National Manufacturing Mission, coupled with the Union Budget 2025, is set to be a game-changer, driving self-reliance and global competitiveness. With a strong push for clean tech, local value addition, and strategic investments, we are entering a new era of manufacturing excellence. The Budget 2025 reinforces the government’s commitment to ease of doing business, MSME empowerment, and upskilling, ensuring a robust industrial ecosystem. Key measures like exemptions on critical electronic components, expanded PLI incentives, and policy shifts signal a clear intent to strengthen India’s role in global supply chains. This initiative not only supports large-scale industries but also fosters startups and emerging enterprises, ensuring holistic growth. With a renewed focus on sustainable manufacturing, innovation, and economic transformation, India is poised to lead the world in production excellence, reinforcing the vision of an ‘Atmanirbhar Bharat’ with world-class manufacturing capabilities.”
Mr. Ritesh Goenka, Managing Director of Damson Technologies comments,” Finance Minister Nirmala Sitharaman’s announcement of the National Manufacturing Mission in the 2025 Union Budget is a commendable step towards strengthening India’s manufacturing sector. By providing policy support and a structured framework, this mission is poised to enhance domestic production and self-reliance, aligning seamlessly with our objectives at Damson Technologies. The emphasis on Micro, Small, and Medium Enterprises (MSMEs) as pivotal growth engines, responsible for 45% of India’s exports, is particularly encouraging. The introduction of customized credit cards for micro-enterprises and the enhancement of classification limits for MSMEs will undoubtedly facilitate greater financial inclusion and operational expansion. Damson Technologies is a leading OEM and manufacturer of computer peripherals, accessories, and lifestyle products. Our flagship brand, JUST CORSECA, embodies innovation and quality. With a ₹200 crore investment, our state-of-the-art Ahmedabad facility produces high-quality audio systems and smart accessories, reducing import dependence and meeting domestic demand. The government’s focus on clean technology manufacturing and attracting investments across various sectors resonates with our vision of integrating advanced innovations, including AI-powered products and app-based controls, into our offerings.”
Mr. Amit Goel, Founder of Innotech, “A key driver of India’s economic expansion has been the Production-Linked Incentive (PLI) schemes created by the government. These incentives have already yielded impressive results in mobile phone manufacturing, with exports reaching $11.2 billion and Foreign Direct Investment (FDI) reaching $165.1 billion in electronics alone. India is poised to capitalise on these gains, and Budget 2025 should strengthen existing PLI schemes not only in mobile phone manufacturing but also across consumer electronics, semiconductors, and electric vehicle components sectors. Moreover, the BUDGET 2025 has highlighted the rationalisation of custom duties, taxation reforms on permanent establishments, and improved warehousing facilities for electronic manufacturing inputs as critical measures that will boost domestic production. We at Innotech feel that these areas, with immense growth potential, are likely to receive additional incentives in Budget 2025.”
Mr. Vipin Arora, Director of BMT – Electrinno Topology Industries comments “India’s electronics industry is eyeing significant reforms in the upcoming Union Budget to address challenges like high tariffs, regulatory hurdles, and tax compliance. They propose a simplified tariff structure, tax reductions, and financial support to boost manufacturing.The revision of Basic Customs Duty (BCD) on key electronics items will strengthen the ‘Make in India’ initiative and help meet Prime Minister Narendra Modi’s ambitious $500 billion electronics manufacturing target. While announcing reductions in import duties on key electronics components in the Union Budget, Finance Minister Nirmala Sitharaman said the exemption is part of a broader initiative to support the industry by reducing costs and encouraging domestic production. The PLI scheme seeks to attract investments, improve efficiency, and make Indian companies globally competitive. The schemes play a crucial role in the Atmanirbhar Bharat initiative, focusing on self-reliance and sustainable economic growth. We definitely believe that the government’s measures are expected to strengthen supply chains, draw global investments, and establish India as a manufacturing powerhouse.”
Mr. Varun Aggarwal, Director, Mobatree says, “Sitharaman announced a National Manufacturing Mission to support domestic manufacturing of solar PV cells, EV batteries, motors and controllers, electrolysers, wind turbines, high-voltage transmission equipment, and grid-scale batteries. In the electronics and smartphone segment, exemption of customs duties on critical components, including lithium-ion battery scrap, cobalt powder, and other essential minerals will be a significant boost for the industry. This enhancement in consumer spending capacity, coupled with strengthened domestic manufacturing capabilities, creates a powerful synergy that will accelerate the success of the Make in India initiative.” We are quite certain that that these budgetary measures will nurture a more robust manufacturing ecosystem, enabling companies like ours to contribute significantly to India’s economic growth and global competitiveness.”
“The reduction in BCD on various components, such as open cells for LED/LCD TVs and capital goods for lithium-ion battery production, aims to encourage domestic manufacturing. By lowering the cost of importing these essential components, manufacturers can produce goods more competitively, reducing reliance on foreign imports and promoting local value addition. We feel that the Union Budget 2025 is indeed a strategic step and is designed to create a more conducive environment for domestic manufacturing, enhance competitiveness, and promote sustainable growth. We anticipate that the upcoming budget will strengthen initiatives like the Production Linked Incentive (PLI) scheme and skill development programs. These steps will accelerate India’s technological evolution, generate employment, and boost exports, propelling the country closer to its goal of becoming a global electronics manufacturing hub,” opines Mr. Parth Gupta, Director, Champion Electronics.
Dr. Priyanka Sharma, Head of MONAKA Software R&D Unit, Fujitsu Research of India, opines “The Union Budget 2025, focused on a ‘Viksit Bharat,’ presents a powerful vision for India’s IT industry and its future workforce. I am particularly excited by the emphasis on skilling and upskilling initiatives. The establishment of five National Centers of Excellence, leveraging global partnerships, will directly address the growing demand for skilled professionals in areas crucial to building a tech-for-good India. The expansion of IITs and the new AI Center of Excellence for education will further strengthen this talent pipeline, ensuring India remains at the forefront of technological innovation. The budget’s commitment to a Deep Tech Fund of Funds and the PM Research Fellowship scheme is equally significant. These initiatives will provide critical support for next-generation startups and research institutions, fostering a vibrant ecosystem of innovation and attracting top talent. The focus on supporting first-time entrepreneurs, particularly women is commendable and will contribute to a more inclusive and equitable growth story. These investments in education, research, and entrepreneurship will not only benefit the IT sector but will drive India’s overall economic transformation, creating a more prosperous and inclusive future for all. This budget signals a clear commitment to building a skilled and empowered workforce, ready to seize the opportunities of the future.”
Conclusion
India’s electronics manufacturing sector holds vast growth potential. Budget 2025 can boost this by strengthening PLI schemes, enhancing domestic supply chains, upskilling workers, and improving export competitiveness, positioning India as a global electronics manufacturing hub.
Covered By: Mobility India / Cover Story
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