The Union Budget 2025 will enhance the Production-Linked Incentive (PLI) scheme, highlighting certain sectors and stocks. The government plans to increase the PLI allocation for FY26, extending it to more labour-intensive sectors. This move aims to boost domestic manufacturing and address credit flow issues.
The renewable energy sector received a significant budget increase for FY25, reaching Rs 19,100 crore, up from Rs 7,848 crore. The government plans further expansions in PLI, especially for upstream solar components like polysilicon and wafers. Companies like CleanMax, Adani Solar, Premier Energies, Suzlon, and Waaree Energies will benefit.
The electronics sector, particularly mobile manufacturing, continues to grow, with a 17% increase in smartphone exports in FY24. Apple’s contract manufacturers, Foxconn, Wistron, and Pegatron, have significantly contributed to this growth. SBI expects electronics exports to surpass Rs 1.5 lakh crore in FY25.
India’s pharmaceutical sector has grown by 9%, reaching $54 billion in FY24. The focus on local production of APIs will strengthen reliability and reduce dependence on China.
The budget will spur economic growth by focusing on these key sectors and promoting private investments.
