Ashwini Vaishnaw says National Manufacturing Mission can fuel India's growth

In a significant move to bolster India’s manufacturing sector, Finance Minister Nirmala Sitharaman today announced the launch of the National Manufacturing Mission, reinforcing the government’s vision of transforming India into a global production powerhouse. The mission will provide policy support, execution roadmaps, and a governance framework to accelerate manufacturing growth across small, medium, and large industries under the ‘Make in India’ initiative.

“The National Manufacturing Mission will focus on making India a globally competitive manufacturing destination by addressing key industry challenges, promoting ease of doing business, and ensuring a future-ready workforce,” said the Finance Minister while unveiling the initiative.

The mission aims to streamline regulatory processes, enhance access to technology, and strengthen India’s role in global supply chains. The groundwork for this initiative was laid with the Make in India program, launched by Prime Minister Narendra Modi during his first term.

Ashwini Vaishnaw, Union Minister for Railways and Electronics and IT, emphasised the government’s commitment to manufacturing, stating, “Many things have changed since the launch of the Make in India program. This budget reflects a laser-sharp focus on manufacturing. To drive this forward, we need to start with deregulation. Next, we must address the needs of MSMEs from a fresh perspective—considering their credit and rating requirements, access to technology, labour needs, and bank loans—as 40-45% of India’s manufacturing output comes from MSMEs. The next key focus will be on building the infrastructure necessary for manufacturing growth.”

Vaishnaw further highlighted that, for the first time since independence, manufacturing has received such significant policy attention. He noted that the Finance Ministry, Commerce Ministry, and sectoral ministries will collaborate to implement the mission effectively.

Citing the example of the electronics sector, Vaishnaw pointed out how long-standing challenges are being systematically addressed. “In electronics manufacturing, several hurdles had to be overcome—starting with customs regulations, followed by the lack of a centralised warehousing facility for components, which was crucial for electronics manufacturing. This budget has resolved these issues. Even complexities arising from Advance Pricing Agreements (APA) have been addressed in today’s budget speech. Additionally, the tax establishment has received clear directives to simplify the taxation system, further easing business operations.”

The government is confident that the impact of these reforms will be evident in the next three to four years. Vaishnaw elaborated on the anticipated growth trajectory. “Electronics manufacturing, currently valued at $115 billion, is projected to double or even triple in the coming years. Employment in the sector, which currently stands at 25 lakh, is expected to grow fourfold. Today, India manufactures servers, mobile phones, laptops, medical electronics, defense electronics, and power electronics. In the next three years, large-scale manufacturing will also take root in India.”

Applauding the government’s vision, Warren Harris, CEO & MD of Tata Technologies, stated, “The budget’s focus on establishing a National Manufacturing Mission aligns with our goal of engineering in India for 'Make in India' and enhancing the nation's self-reliance in manufacturing. This initiative is set to attract investments and improve efficiency, positioning Indian companies as globally competitive players.”

The National Manufacturing Mission is a crucial step in India’s broader strategy to establish itself as a preferred destination for global manufacturers, particularly as companies seek alternatives under the China+1 strategy. With robust policy backing and focused reforms, India is poised to emerge as a leading global manufacturing hub in the years ahead.