The manufacturing package concentrates on “strategic and frontier” capabilities—pushing high-tech, scale, and ecosystem depth rather than only incremental output. The measures span semiconductors, biopharma, advanced tooling, rare earth magnets, container manufacturing, chemicals, textiles, electronics components, sports goods, and the revival of legacy industrial clusters. It also highlights strengthening domestic production of high-value and technologically advanced construction and infrastructure equipment.
Alongside production-side schemes, the tax and customs proposals focus on bonded manufacturing, trusted operators, export facilitation, and targeted duty relief for specific inputs and components—especially where export competitiveness or strategic capability is the goal.
Explainer Table 1 — Strategic manufacturing initiatives highlighted
| Area | Policy instrument mentioned | What it is meant to unlock |
| Semiconductors | India Semiconductor Mission (ISM) 2.0 | Scale and depth in chip ecosystem |
| Biopharma | Biopharma SHAKTI | Capability and competitiveness in biopharma |
| Tooling | Hi-Tech Tool Rooms in CPSEs | Better precision manufacturing support |
| Critical minerals | Rare Earth Permanent Magnets programme | Research + mining + processing + manufacturing chain |
| Logistics/industrial inputs | Container Manufacturing scheme | Domestic capacity for containers |
| Chemicals | 3 dedicated chemical parks | Domestic production and clustering |
| Textiles | Integrated Programme for Textiles | Stronger domestic value chain |
| Electronics | Electronics Components Manufacturing Scheme | Local components ecosystem |
| Sports | Affordable sports goods initiative | Wider access + domestic production |
| Industrial renewal | Revive 200 legacy industrial clusters | Upgrading older clusters for new growth |
| Infra equipment | High-value construction & infra equipment push | Advanced machinery manufacturing capability |
Explainer Table 2 — Tax/customs measures linked to manufacturing and exports
| Measure | What changes | Why it matters operationally |
| 5-year income-tax exemption for certain non-residents | For those providing capital goods/equipment/tooling to toll manufacturers in bonded zones | Encourages global participation in bonded manufacturing setups |
| Safe harbour for non-resident component warehousing | Applies to component warehousing in bonded warehouses | Reduces disputes/uncertainty for warehousing models |
| Deferred duty payment window | For trusted manufacturers | Improves working capital and reduces friction |
| Duty-free import limit for seafood export inputs | Raised from 1% to 3% of FOB value of previous year’s export turnover | Expands input flexibility for exporters |
| Duty-free inputs for shoe uppers exports | Extended beyond leather/synthetic footwear exports | Broadens export-linked relief |
| Export timeline extension | From 6 months to 1 year for specified exporters | More realistic timelines for production/export cycles |
| BCD exemptions for specific components | Microwave oven parts; aircraft manufacturing components/parts; aircraft-part raw materials for defence MRO needs | Builds capability and lowers cost barriers in targeted segments |
| Trusted supply chains in risk system | Recognition for regular importers | Less repetitive verification, faster clearance |
| Electronic sealing for export cargo | Factory-to-ship clearance enabled | Reduces logistics delays |
| One-time SEZ measure | Concessional duty for eligible SEZ units selling into domestic tariff area | Facilitates inventory/market balancing for SEZ manufacturers |