The Indian government has significantly ramped up its push for domestic manufacturing, with a massive allocation of Rs 21,085 crore in the Union Budget 2024-25. The lion’s share of this fund, a whopping 62%, is earmarked for the Ministry of Electronics and Information Technology (MeitY) to propel key initiatives under the Make in India program.
Central to this investment are the production-linked incentive (PLI) schemes, which have been expanded to cover 16 sectors, including toys, shoes, and leather. The scheme has proven successful in sectors like IT hardware, although it faced initial challenges.
Additionally, the government has doubled down on the development of semiconductors and displays, offering incentives to companies setting up manufacturing facilities in India.
The auto sector is another major beneficiary, with a seven-fold increase in allocation to Rs 3,500 crore. This is expected to accelerate the adoption of electric vehicles and boost companies like Ola Electric, Bajaj Auto, Tata Motors, and Maruti Suzuki.
While the PLI scheme for specialty steel has faced hurdles, the government has increased its allocation by a hundred times to Rs 245 crore. The sector has shown progress, with 57 Mou’s implemented and five units already in production.
The budget also includes a substantial boost for manufacturing durable consumer goods like air conditioners and LED lights. The government aims to attract new investments and expand production capacity in this sector.
Overall, the government’s aggressive push through PLI schemes and other initiatives is expected to create jobs, boost exports, and enhance India’s position as a global manufacturing hub.
