DOMESTIC MANUFACTURING CAPACITIES TO BE AUGMENTED FOR INTEGRATING INDIAN ECONOMY WITH GLOBAL SUPPLY CHAINS

GOVERNMENT WILL SUPPORT THE DOMESTIC ELECTRONIC EQUIPMENT INDUSTRY TO LEVERAGE THE OPPORTUNITY OF INDUSTRY 4.0

NATIONAL FRAMEWORK FOR STATES TO BE FORMULATED FOR PROMOTING GLOBAL CAPABILITY CENTRES IN EMERGING TIER 2 CITIES

In our journey of realizing ‘Sabka Vikas’ by stimulating balanced growth of all regions, Exports have been reckoned as one of the powerful engines of India’s growth story. The Union Budget 2025-26 tabled in Parliament today by Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman, aims to initiate transformative reforms in domestic manufacturing and integrating India’s economy with global supply chains.

BharatTradeNet

A digital public infrastructure, ‘BharatTradeNet’ (BTN) for international trade has been proposed to be set-up as a unified platform for trade documentation and financing solutions. In the budget speech Smt. Sitharaman stated that, “BTN will complement the Unified Logistics Interface Platform and will be aligned with international practices”.

Integrating India’s Economy with Global Supply Chains

The Finance Minister announced in the Union Budget 2025-26 that support will be provided to develop domestic manufacturing capacities for integrating Indian economy with global supply chains. In this direction, the sectors will be identified based on an objective criteria.

It is also proposed that facilitation groups with participation of senior officers and industry representatives be formed for select products and supply chains.

Smt. Nirmala Sitharaman highlighted that the youth of India have both high skills and talent which are required for capitalizing on the opportunities related to Industry 4.0. “Our Government will support the domestic electronic equipment industry to leverage this opportunity for the benefit of the youth”, she added.

National Framework for GCC

It has been proposed in the Union Budget 2025-26 that a National Framework will be formulated as guidance to states for promoting Global Capability Centres in emerging tier 2 cities. This will suggest 16 measures for enhancing availability of talent and infrastructure, building-byelaw reforms, and mechanisms for collaboration with industry.

Digital trade infrastructure proposed to unify trade documentation and financing, supporting supply chain integration and manufacturing capacity. A policy proposes creation of a BharatTradeNet, a digital public infrastructure as a unified platform for international trade documentation and financing solutions aligned with logistics systems and international practice. Complementary measures include augmenting domestic manufacturing capacities for global supply chain integration via objectively identified sectors and facilitation groups of officials and industry representatives, support for the domestic electronic equipment industry to leverage Industry 4.0 opportunities, and a national framework guiding states to promote Global Capability Centres in emerging tier 2 cities.