POLICY PUSH ACCELERATES MANUFACTURING MOMENTUM

Dear Readers,

Union Budget 2026 was a welcoming one for micro, small, and medium enterprises (MSMEs). The Government of India’s efforts to strengthen supply chain, liquidity measures for MSMEs, targeted initiatives to boost industry competitiveness, and focus on skill development can further strengthen the sector.

Higher capital expenditure on transport infrastructure, an SME Growth Fund of INR 10,000 crore, the strengthening of legacy industries, and scaling manufacturing across seven strategic sectors are expected to benefit the manufacturing sector. Semiconductor Mission 2.0, higher allocation for electronics component manufacturing, and promotion of data centers and cloud computing will help advance technological development. Strengthening the momentum is the extension of concessional duty rates from March 31, 2026 to March 31, 2028, providing much-needed policy certainty. Extending the deferred customs duty payment cycle from 15 to 30 days would ease working capital pressures and improve liquidity.

As we move into the financial year 2026-27, I am pleased to note that the industry has shown resilience, supported by steady demand from key sectors and continued investment in technology and capacity. The Indian machine tool industry, backed by policy support and infrastructure investments, will continue its efforts with renewed optimism.

Indian Machine Tool Manufacturers’ Association (IMTMA) will remain steadfast in its mission to foster rapid industrial progress while keeping readers of Modern Manufacturing India (MMI) abreast of the latest developments in manufacturing.

MOHINI KELKAR
President 
IMTMA