News

The Expenditure Finance Committee, under the Ministry of Finance, has given its nod to a Rs 10,000 crore fund for the National Manufacturing Mission (NMF) -- an initiative announced in Budget 2025 aimed at boosting the country's manufacturing space.

The news confirms a Zee Business report on Wednesday.

The establishment of NMF is in line with the central government's long-term goal of raising the contribution of manufacturing in the country's overall GDP to 25 per cent, from the current 12.9 per cent, by 2035.

The Mission is set to improve the ease of doing business, generate skilled jobs and support MSMEs while focusing on greener technology like EVs, solar energy and green hydrogen. Its goal is to transform India into a global manufacturing hub, aligned with its broader 'Make in India' and 'Atmanirbhar Bharat' (self-reliant India) drives.

An announcement on the apex body for the manufacturing sector is likely soon, according to sources.

The Rs 10,000 crore fund will be used for Viability Gap Funding (VGF), priority-sector greenfield projects and manufacturing in niche-sector areas, with the apex body set to coordinate with the manufacturing-related ministries to promote manufacturing in the country.

As part of the programme, semiconductors, EVs and renewable energy will be the government's priority areas within the manufacturing sector. A special emphasis will also be laid on areas like textiles, leather, metals and automotive, capital goods and consumer durable sectors.

Here are answers to some frequently asked questions (FAQs) on the subject:

When was the National Manufacturing Mission announced?

Finance Minister Nirmala Sitharaman announced the Mission on February 1, 2025, while presenting the Union Budget for the next financial year in Parliament.

What exactly will the National Manufacturing Mission do?

As a major strategic government initiative, the mission is aimed at transforming the country’s manufacturing space. It is designed to provide policy support, execution roadmaps, governance frameworks, and coordinated monitoring across central ministries and states.

What is the main goal of the Mission?

It focuses on five core pillars:

Why is the manufacturing space crucial to the economy?

The sector creates large-scale employment across skill levels, increases domestic value addition, lowers dependence on imports for critical goods, enhances exports and integration into global value chains, and ultimately contributes to the country's GDP.