Union Budget 2025: Government to launch national manufacturing mission to boost 'Make in India'

A National Manufacturing Mission covering small, medium and large industries for furthering “Make in India” is proposed in Budget 2025-26. The Mission’s mandate includes five focus areas: ease and cost of doing business, future ready workforce for in-demand jobs, a vibrant and dynamic MSME sector, availability of technology, and quality products.

“Our government will set up a National Manufacturing Mission covering small, medium and large industries for furthering “Make in India” by providing policy support, execution roadmaps, governance and monitoring framework for central ministries and states,” finance minister Nirmala Sitharaman said in her budget speech.

She also proposed a new scheme to make India a global hub of toys and a focus product scheme footwear and leather sector.



To enhance the productivity, quality and competitiveness of India’s footwear and leather sector, a focus product scheme will be implemented to support design capacity, component manufacturing, and machinery required for production of non-leather quality footwear, besides the support for leather footwear and products.

The scheme is expected to facilitate employment for 22 lakh persons, generate turnover of Rs 4 lakh crore and exports of over Rs 1.1 lakh crore.

Separately, the government will implement a scheme to make India a global hub for toys.

“The scheme will focus on development of clusters, skills, and a manufacturing ecosystem that will create high-quality, unique, innovative, and sustainable toys that will represent the 'Made in India' brand,” she said.


“The scheme is likely to offer incentives such as financial support, infrastructure development to domestic manufacturers. The initiative could facilitate partnerships between Indian toy makers and global brands, boosting the sector’s presence in international markets,” noted Saurabh Agarwal, Tax Partner, EY India.

To promote employment and entrepreneurship opportunities in labour-intensive sectors, the government will also undertake specific policy and facilitation measures.