Budget Expectations 2025: CII’s wishlist for boosting manufacturing sector in upcoming budget

In the upcoming Union Budget 2025-26, CII (Confederation of Indian Industry) expects the government to focus on boosting the manufacturing sector under various criteria. As India’s economy continues to grow, the manufacturing sector holds an important role in unlocking sustainable development and job creation. However, the sector has been facing challenges in recent years. To revive growth and create employment opportunities, the government must implement policies in the upcoming Budget 2025 that support the manufacturing sector. 

In this context, these are the expectations of CII from the upcoming budget, highlighting the need for reforms, incentives, and investments to boost manufacturing and drive economic growth.

CII is urging the government to fast-track the implementation of the National Manufacturing Policy and establish National Investment and Manufacturing Zones (NIMZs) in various locations, which should be a top priority.

CII expects the government to set up a high-level task force on incentives to promote mass manufacturing on a huge scale to offer jobs to low-skilled workers. 

In the upcoming union budget 2025, CII expects the threshold limit of investment to be reduced to Rs 50 crores which would encourage mid-sized companies to participate as well. The quantum of deduction should be enhanced to 25 percent. Investment allowance should also be eligible for relief under MAT provisions to avoid rendering this benefit notional. 

Given the importance of kick-starting the investment momentum, CII has suggested that the government in the upcoming Union Budget 2025-26 allow 25 per cent accelerated depreciation for investments in plant and machinery for a defined period of 3-5 years. This step can help prepone investments without affecting revenues.  

CII  in its  Pre-Budget  Memorandum has brought out a few cases of anomalies in customs duty structure, where duty rates on inputs are higher than the finished 
products. For example, unwrought lead attracts 5 per cent duty compared to 10 per cent on waste and a scrap of lead-acid batteries. Such cases need to be looked into. 

The global excess capacity still poses a threat of increased imports flooding the Indian market. Therefore CII proposes that the present peak rate of customs duty 
of 10 per cent should be maintained in the forthcoming budget.