Post Budget Comments on Manufacturing and Infrastructure Development

The recent Budget has roposed some measures which the MSMEs of India see as beneficial to their sector. These measures include policies to promote manufacturing, infrastructural development and relief in lower slabs of taxes. The last is seen as giving a support to the smaller enterprises which may be able to save taxes and thrive.

Following are the comments regarding these issues - 

The Union Budget 2025 sends a strong message about the central role of MSMEs in driving India’s electronics manufacturing sector. By prioritising MSME growth, the government is laying the foundation for a more resilient domestic production ecosystem. While the anticipated anti-dumping duty on final products like mobile accessories was not introduced, revisions in Basic Customs Duty (BCD) on raw materials are expected to strengthen the domestic supply chain and reduce import dependency.

A key highlight is the government’s commitment to fostering innovation and supporting both private-sector R&D and MSMEs. To further enable growth, investment and turnover limits for MSME classification have been increased by 2.5 times and 2 times, respectively, improving access to capital and mitigating technology obsolescence. Additionally, the National Manufacturing Mission, aligned with the Make in India initiative, is set to accelerate local production, enhance competitiveness and position India as a strong player in global electronics manufacturing. Together, these measures signal a forward-looking approach that promotes sustained growth, technological advancement and a more self-reliant electronics industry in India.

--Imran Kagalwala, Co-Founder, UNIX India

The Budget has proposed a significant increase in allocation to MeitY by 48% to Rs. 26,000 crore which includes subsidies for semiconductor also. The welcome move by the Government to promote compound semiconductors is also very heartening and will indeed take India beyond horizons. We are very confident that Government of India will announce Semiconductor Mission 2.0, which will boost the sector and put India on World map. I am very confident that in the changing dynamics of the World, Indian Semiconductor players like us and the others are going to play a major role and the unstinted support by Government of India and State of Maharashtra is very pivotal in the short to long run.

--Rajendra K Chodankar, Chairman & CEO, RRP Electronics

The recently announced budget presents a well-rounded approach, offering significant benefits across key sectors of the economy. One of the most noteworthy measures is the substantial income tax relief for the salaried middle class, with the tax exemption threshold raised from Rs 7 lakh to Rs 12 lakh. This progressive step is poised to enhance household savings and boost consumption, providing much-needed financial respite to millions of families.

The government's strong focus on infrastructure development, particularly in transportation and energy, is commendable. A landmark initiative under this is the Nuclear Energy Mission, which aims to achieve 100 GW of nuclear power capacity by 2047, reaffirming the government’s commitment to sustainable energy growth.

To foster entrepreneurship, the introduction of a new Rs 10,000 crore Funds Scheme is set to invigorate the startup ecosystem, offering enhanced credit guarantees and moderated fees to encourage innovation and economic dynamism.

The budget also underscores the strategic push towards technology with an allocation of Rs 500 crore for three Centres of Excellence in AI. These, along with the Deeptech Fund, signal a clear commitment to strengthening India's position in the global AI landscape. While a greater allocation toward fostering technological innovation could have further accelerated growth, the comprehensive measures outlined in this budget lay a strong foundation for inclusive growth, sustainability, and economic resilience.

--Navjot Sharma, MD, Marketing & Operations, Clavrit

These comments show that the Budget's provisions for support in the form of financal assistance, tax measures and support in the form of resources to the manufacturing companies of India in the IT and electronic sector are being welcomed by the business leaders in these segments. It remains to be seen how much the IT-MSMEs segment grows with this support. here, it is to be kept in mind that they also have to contend with the large conglomerates who have also entered into the Make in India segment of the Indian industry.

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