Budget 2025 for Manufacturing Sector
What's in store for the Manufacturing Sector from the upcoming full Budget on February 1. Set to be a 'Pocket Booster' budget with focus on giving consumption a leg-up along with pushing capex Read More.., it is set to benefit a host of sectors. Keep a track on all the expectations, final announcements and in depth analysis of the Budget decision only on Financial Express. We offer you a detailed list of expectation and announcements for Manufacturing Sector on its dedicated page Who Gets What. Navigate through all the declarations at a glance from the current and past Union Budgets on this page.
Budget 2025-26 Announcements for Manufacturing Sector
Manufacturing Sector
- Credit guarantee cover for micro and small enterprises increased to Rs 10 crore.
- Credit guarantees enhanced for term loans up to Rs 20 crore.
- Investment and turnover limits for MSMEs will be increased, allowing for a 2.5x and 2x expansion in these thresholds, respectively.
- climate-friendly development, the mission will also focus on clean technology manufacturing aiming to build a robust ecosystem for solar PV cells, electric vehicle (EV) batteries, motors and controllers, electrolysis, wind turbines, high-voltage transmission equipment, and grid-scale batteries.
- Allocations for large-scale electronics manufacturing rose by 36% to Rs 6,125 crore, while drone manufacturing saw a significant 72% increase to Rs 57 crore.
Who Got What
Profile
sectors
Budget Announcements for Manufacturing Sector in FY2025
Manufacturing Sector
- 12 new industrial hubs will be built in the country.
- The scope of credit guarantee scheme for MSMEs will increase.
- Mudra loan amount increased from Rs 10 lakh to Rs 20 lakh.
- New branches of SIDBI will be opened. 4 branches will open this year.
- Funds will be provided for setting up 50 multi-product food units.
- MSMEs will be given help to open food safety labs.
- Scheme with private sector to promote e-commerce exports.
- Internship for 5 crore youth in 500 top companies.
- Under CSR, companies will bear 10% of the internship expenses of the youth.
Budget Announcements for Manufacturing Sector in FY2024
Manufacturing Sector
- Budget’s indirect tax proposals aim to boost domestic manufacturing.
- New co-operatives that commence manufacturing activities till 31.3.2024 shall get the benefit of a lower tax rate of 15%.
- Customs duty on certain TV parts was reduced to boost TV manufacturing while making it less expensive for consumers.
- Basic customs duty on electric kitchen chimneys is being increased to 15% to encourage domestic manufacturing.
- Exemption from Basic Customs Duty on raw materials for manufacture of CRGO Steel, ferrous scrap and nickel cathode is being continued.
Budget Announcements for Manufacturing Sector in FY2023
Manufacturing Sector
- It has been revealed that new domestic manufacturing companies have the option to pay tax at a rate of 15% without claiming deductions if they start manufacturing by March 31, 2023.
- Specific startups have been notified about the opportunity for a tax holiday for three out of their initial ten years if they incorporate by April 1, 2022.
- An announcement has been made to extend both deadlines by one year.
Budget Announcements for Manufacturing Sector in FY2022
Manufacturing Sector
- Union Budget 2021-22 introduced an outlay of INR 1.97 Lakh Crores (US$ 26 billion) for Production-linked Incentive (PLI) schemes spanning across 13 sectors.
- Extra budgetary allocation of 0.76 Lakh Crores (US$ 10 billion) was announced specifically for the PLI scheme focusing on semiconductor manufacturing.
Budget Announcements for Manufacturing Sector in FY2021
Manufacturing Sector
- Introduced in September 2019, new provisions provide a concessional corporate tax rate of 15% to newly incorporated domestic manufacturing companies starting production by March 31, 2023.
- Corporate tax rate for new companies in the manufacturing sector was notified to be reduced to an unprecedented level of 15%.
- A scheme aimed at incentivizing the production of mobile phones, electronic equipment, and semiconductor packaging was announced
Budget Announcements for Manufacturing Sector in FY2020
Manufacturing Sector
- Make in India initiative claimed to have boosted mobile and parts manufacturing companies from 2 to over 268, generating significant job opportunities.
- GST aimed to support small traders, manufacturers, and service providers.
- Tax rate reduced to 25% for companies with turnover up to Rs 250 crore, encompassing nearly 99% of businesses, including new manufacturing companies without turnover limits
Budget Videos
