Kamal Ghorui
The government has unveiled a targeted manufacturing push centred on seven strategic and frontier sectors, positioning them as key drivers of job creation, domestic value addition and long-term industrial competitiveness.Presenting the proposals, Finance Minister Nirmala Sitharaman said the strategy is anchored in accelerating growth through focused industrial interventions.
“Under our first kartavya to accelerate and sustain economic growth, I propose interventions in six areas, including scaling up manufacturing in seven strategic and frontier sectors,” she said.The seven sectors identified for focused scaling include biopharmaceuticals, semiconductors, electronics components, rare earth magnets, chemicals, capital goods manufacturing and textiles.
Biopharma SHAKTI programme
Announcing a major healthcare manufacturing push, the finance minister said, “To develop India as a global Biopharma manufacturing hub, I propose the Biopharma SHAKTI with an outlay of Rs 10,000 crores over the next five years.”The programme will focus on building domestic biologics and biosimilars manufacturing, expanding pharmaceutical education capacity and creating a network of over 1,000 accredited clinical trial sites.
Semiconductors: Expanding mission to full supply chain
Building on existing semiconductor efforts, she said, “We will launch ISM 2.0 to produce equipment and materials, design full-stack Indian IP, and fortify supply chains.”The plan also includes industry-led research and training centres to build technology and workforce capabilities.
Electronics components: Outlay expansion to build domestic ecosystem
The government will expand support for electronics component manufacturing, with the finance minister noting, “The Electronics Components Manufacturing Scheme… already has investment commitments at double the target. We propose to increase the outlay to Rs 40,000 crore to capitalise on the momentum.”
Rare earth magnets: Dedicated corridors planned
The government will support mineral-rich states to develop domestic rare earth ecosystems.“We propose to support… dedicated Rare Earth Corridors to promote mining, processing, research and manufacturing,” she said.
Chemicals: New chemical parks through cluster model
To cut import dependence in industrial inputs, the government will launch a new chemical manufacturing push.“We will launch a Scheme to support States in establishing three dedicated Chemical Parks… on a cluster-based plug-and-play model,” she said.
Capital goods: Tool rooms, equipment manufacturing and container ecosystem
The Budget outlines multiple measures to deepen industrial equipment manufacturing. “Strong capital goods capability is a determinant of productivity and quality across different sectors,” the finance minister said.The plan includes hi-tech tool rooms, construction and infrastructure equipment manufacturing support, and a container manufacturing ecosystem with Rs 10,000 crore outlay over five years.
Textiles: Integrated programme across fibre, clusters and skills
For labour-intensive job creation, the government has proposed a multi-part textile push covering fibre self-reliance, cluster modernisation, sustainability and skilling through Samarth 2.0 and Mega Textile Parks.
Champion MSMEs: New growth fund and risk capital support
The government announced a targeted MSME growth financing strategy.“Recognising MSMEs as a vital engine of growth, I propose a three-pronged approach to help them grow as ‘Champions’,” the finance minister said.As part of this, the government will launch a Rs 10,000 crore SME Growth Fund aimed at supporting high-potential MSMEs and incentivising enterprises based on defined performance and scale criteria.The government will also strengthen micro enterprise funding support. “I also propose to top up the Self-Reliant India Fund set up in 2021, with Rs 2,000 crore to continue support to micro enterprises and maintain their access to risk capital,” she said.The overall manufacturing strategy, the finance minister said, reflects the government’s broader reform direction.“The Reform Express is well on its way and will maintain its momentum to help us fulfil our kartavya,” she said.
