As India gears up for the Union Budget 2026-27 presentation by Finance Minister Nirmala Sitharaman on February 1, the manufacturing and industrial sector is making a strong pitch for productivity-led growth over mere capacity expansion. Stakeholders from electricals, textiles, refractories, gems and jewellery, and apparel exports are united in calling for policies that help factories run smarter, not just bigger.
Naresh Kumar, Chief Operating Officer at Lauritz Knudsen Electrical and Automation, captured the sentiment: "Productivity represents India’s largest untapped manufacturing advantage. A significant portion of the industrial base is approaching a natural modernisation inflexion point, creating an opportunity to leapfrog legacy systems and embed automation, digital intelligence, and clean energy directly into factory design."
He urged the budget to support investments in automation, digitalisation, and renewable-ready infrastructure, especially for MSMEs struggling with energy costs and downtime.
The gems and jewellery sector, a major job creator and export earner for the nation, echoed similar demands. Mangesh Chauhan, Managing Director of Sky Gold & Diamonds, highlighted the need to "rationalise import duties on gold, silver, platinum, coloured gemstones and other essential inputs."
"Lower duties will ease manufacturing costs, improve pricing for exporters, and help Indian producers compete more effectively in global markets", he added, while pushing for GST cuts on jewellery from 3 per cent to 1-1.25 per cent and faster customs clearances amid rising global tariffs.
Textiles and apparel, facing shifting supply chains, want Free Trade Agreements with the UK and EU, sustained PM MITRA parks, and export-linked incentives. Sanjay Gandhi of Pearl Global Industries Ltd emphasised on "policy continuity around export-linked schemes, faster duty remission, and sustained support for integrated textile infrastructure."
Refractories, vital for steel, cement, and glass production, seek recognition as a "critical sector" with duty relief on raw materials like magnesite and alumina. Parmod Sagar, Chairman of RHI Magnesita India, warned that even 5 per cent import duties create significant cost burdens, hindering global competitiveness. "In addition, a closer monitoring of 'minimal value-added' imports shown as having been manufactured here is required and by providing clear support mechanisms for circular economy technologies would facilitate the refractory industry to continue as an enabler of India’s infrastructure growth for," added Sagar.
As more and more industry stakeholders pin their hopes on the upcoming budget presentation, these views seem to align with broader industry views for logistics upgrades, skilling, and policy stability to position India as a manufacturing powerhouse by 2047.
