New Delhi,jan 27
Days ahead of the Union Budget 2025-26 on February 1, the industry players in the manufacturing sector have called for favourable policies boosting local manufacturing, reducing GST on consumer durables, and tax reforms to increase disposable incomes and stimulate consumer spending.As the Union government is keen to increase share of manufacturing in GDP from 17 per cent to 25 per cent, the industry players are expecting financial incentives for expanded production-linked incentive (PLI) schemes, support for sustainable manufacturing and tax exemptions among others. Simarpreet Singh, Executive Director and CEO of Hartek Group, commended the Indian government’s strides in supporting the renewable energy sector, particularly solar power.He further highlighted the importance of continued support for production-linked incentive (PLI) schemes and infrastructure development, which would drive private sector participation, foster innovation, and enhance India’s manufacturing capabilities.Meanwhile, Nileshkumar Kukalyekar, Business Director for South Asia, Middle East, and Africa at Envalior, emphasised the need for greater investment in sustainable manufacturing and innovation. With global demand for environmentally responsible products rising, Kukalyekar urged the government to focus on policies that incentivize the use of recycled and bio-based materials.”We urge the government to focus on policies that incentivise the use of recycled and bio-based materials, support research into new green technologies, and promote circular economy models,” he said.Strengthening such initiatives, according to Kukalyekar, would help accelerate India’s transition to a low-carbon economy.On the technological front, Ankit Kumar, CEO of Skye Air, voiced strong support for the development of the drone sector, a technology with the potential to revolutionise logistics, especially in e-commerce and quick-commerce. Kumar suggested that the upcoming budget should prioritize “tax exemptions or reduced GST rates on drone services, manufacturing, and maintenance,” which would significantly lower operational costs and make drones more accessible to businesses.
He also called for expanding funding under the PLI scheme to include drone services and infrastructure, such as drone ports, as well as simplifying regulatory processes for drone operations, particularly for Beyond Visual Line of Sight (BVLOS) deliveries.
Saurabh Rai, CEO of Arahas Technologies, highlighted the need to strike a balance between rapid technological advancements, particularly in AI, and the foundational needs of sectors like Geographic Information Systems (GIS) and space tech.
Rai expressed concern about the underfunding of critical projects such as GIS, which are essential for disaster preparedness, land optimization, and sustainable urban planning. He urged that the budget prioritize “boosting funding for GIS, prioritizing sustainability, and directing AI innovation towards solving real-world problems.”
Harshit Aggarwal, founder and CEO of Novamax Appliances, echoed the sentiments of many industry leaders, urging the government to continue reinforcing policies that support local manufacturing.
