Union Budget 2025-26: A Bold, Inclusive, and Growth-Driven Blueprint for India’s Future, Says EEPC India

Union Budget 2025-26: A Bold, Inclusive, and Growth-Driven Blueprint for India’s Future, Says EEPC India

February 2: The Engineering Export Promotion Council (EEPC) India has hailed the Union Budget 2025-26 as a bold, inclusive, and growth-oriented roadmap that reinforces India’s economic ambitions.

EEPC India Chairman Pankaj Chadha commended the government’s unwavering commitment to infrastructure development, with a record-breaking capital expenditure of ₹11.21 lakh crore for 2025-26. This robust public spending is expected to catalyze private-sector investments and further stimulate economic expansion.

Boost for Engineering Exports

The Budget introduces the Export Promotion Mission and BharatTradeNet, which aim to ease compliance burdens and streamline logistics, providing a significant advantage to exporters. Additionally, MSME support, credit guarantee expansion, and customs duty reforms—especially for critical materials used in EV production—will lower input costs and enhance India’s global cost competitiveness.

Challenges and Unaddressed Concerns

Despite the positive measures, some concerns remain. The absence of updates on the Interest Equalisation Scheme continues to hinder export credit affordability. Similarly, a lack of targeted financial support for export promotion activities, coupled with high logistics costs and non-tariff barriers in key markets, poses challenges that need urgent attention.

India’s Push to Become a Global Manufacturing Hub

The Budget introduces new trade facilitation measures to bolster the engineering goods sector, reinforcing India’s goal of becoming a global manufacturing powerhouse. A new manufacturing mission under the Make in India initiative will offer comprehensive policy backing for industries of all sizes. Key focus areas include solar PV cells, electrolysers, and grid-scale batteries, fostering innovation and sustainability.

Major Relief for MSMEs

In a landmark move, the government has raised the investment and turnover limits for MSMEs, increasing them by 2.5 times and 2 times, respectively. This initiative is expected to empower small businesses, fuel innovation, and generate employment opportunities for the country’s youth.

As the voice of engineering exports for over seven decades, EEPC India—representing nearly 60% of MSME members—enthusiastically welcomes the Budget 2025-26, seeing it as a step forward in driving India’s industrial and export-led growth.

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