Budget 2025 Boosts Industrial Infrastructure with Plug-and-Play Facilities

By Eram Shaikh --
Thursday, 06 Feb, 2025

The Union Budget 2025-26 has laid a significant emphasis on strengthening India's industrial infrastructure, with a key focus on plug-and-play facilities. Finance Minister Nirmala Sitharaman has allocated ₹2,500 crore for a new scheme aimed at developing investment-ready plug-and-play industrial parks that have complete infrastructure. This initiative is expected to significantly benefit the growing number of manufacturing sector entrepreneurs in the country, with 5-10 lakh being added to the industry every year.

Boosting Investment and Manufacturing

The plug-and-play scheme is designed to attract investments and promote manufacturing by providing ready-to-use industrial spaces. These parks will offer essential infrastructure such as land, utilities, and logistical support, enabling businesses to set up operations quickly and efficiently. By reducing the time and resources required for establishing industrial units, the scheme aims to accelerate industrial growth and enhance the competitiveness of Indian manufacturers.

The government has also increased the budgetary allocation for the Department for Promotion of Industry and Internal Trade (DPIIT) by 64%, bringing it to ₹13,145.06 crore for 2025-26, compared to the revised estimate of ₹8,011 crore in 2024-25. This increase reflects the government's commitment to promoting industry and internal trade, including foreign direct investment, startups, and manufacturing.

Key Beneficiaries: New Entrepreneurs

With India's rapidly growing startup ecosystem, the plug-and-play facilities are poised to be a game-changer for new entrepreneurs. By providing access to ready-to-use infrastructure, the scheme eliminates a major hurdle for startups and small businesses, allowing them to focus on innovation, product development, and market expansion. It is estimated that 5-10 lakh entrepreneurs are added to the industry each year, and this initiative will provide them with the necessary support to thrive and contribute to economic growth.

Additional Budgetary Support

In addition to the plug-and-play scheme, the Budget 2025-26 includes increased allocations for various segments that support industrial development:

Intellectual Property Related Works: ₹321.34 crore
Footwear, Leather and Accessories Development Programme: ₹350 crore
National Industrial Corridor Development and Implementation Trust: ₹2,500 crore
Fund of Funds 2.0: ₹2,000 crore
PLI for White Goods: ₹444.54 crore
Industrial Development of UT of Jammu and Kashmir: ₹300 crore

These allocations demonstrate the government's holistic approach to industrial development, addressing various aspects such as intellectual property, specific industries, and regional development.

National Manufacturing Mission

The Finance Minister also announced a national manufacturing mission to provide policy support, execute roadmaps, and establish governance and monitoring frameworks for the manufacturing sector. This mission aims to promote "Make in India" by creating a conducive environment for domestic manufacturing.

Impact on Infrastructure Development

The Union Budget 2025-26 also includes key announcements related to infrastructure and urban development. The government will launch an asset monetisation plan for the 2025-30 period, to infuse ₹10 lakh crore into new projects to boost infrastructure growth. Furthermore, urban sector reforms, including those related to governance, urban land, and planning, will be incentivized to promote efficient and sustainable urban growth.

The Plug and Play facility along with the Industrial Infrastructure provisions outlined in the Union Budget 2025-26 represents a strategic push to accelerate industrial growth, attract investments, and support new entrepreneurs. With significant budgetary allocations and policy support, the government aims to create a robust manufacturing ecosystem that drives economic development and generates employment opportunities.

Budget 2025 Boosts Industrial Infrastructure with Plug-and-Play Facilities. The Union Budget 2025-26 has laid a significant emphasis on strengthening India's industrial infrastructure, with a key focus on plug-and-play facilities. Finance Minister Nirmala Sitharaman has allocated ₹2,500 crore for a new scheme aimed at developing investment-ready plug-and-play industrial parks that have complete infrastructure. This initiative is expected to significantly benefit the growing number of manufacturing sector entrepreneurs in the country, with 5-10 lakh being added to the industry every year.

Boosting Investment and Manufacturing

The plug-and-play scheme is designed to attract investments and promote manufacturing by providing ready-to-use industrial spaces. These parks will offer essential infrastructure such as land, utilities, and logistical support, enabling businesses to set up operations quickly and efficiently. By reducing the time and resources required for establishing industrial units, the scheme aims to accelerate industrial growth and enhance the competitiveness of Indian manufacturers.

The government has also increased the budgetary allocation for the Department for Promotion of Industry and Internal Trade (DPIIT) by 64%, bringing it to ₹13,145.06 crore for 2025-26, compared to the revised estimate of ₹8,011 crore in 2024-25. This increase reflects the government's commitment to promoting industry and internal trade, including foreign direct investment, startups, and manufacturing.

Key Beneficiaries: New Entrepreneurs

With India's rapidly growing startup ecosystem, the plug-and-play facilities are poised to be a game-changer for new entrepreneurs. By providing access to ready-to-use infrastructure, the scheme eliminates a major hurdle for startups and small businesses, allowing them to focus on innovation, product development, and market expansion. It is estimated that 5-10 lakh entrepreneurs are added to the industry each year, and this initiative will provide them with the necessary support to thrive and contribute to economic growth.

Additional Budgetary Support

In addition to the plug-and-play scheme, the Budget 2025-26 includes increased allocations for various segments that support industrial development:

<ul>
 <li>Intellectual Property Related Works: ₹321.34 crore</li>
 <li>Footwear, Leather and Accessories Development Programme: ₹350 crore</li>
 <li>National Industrial Corridor Development and Implementation Trust: ₹2,500 crore</li>
 <li>Fund of Funds 2.0: ₹2,000 crore</li>
 <li>PLI for White Goods: ₹444.54 crore</li>
 <li>Industrial Development of UT of Jammu and Kashmir: ₹300 crore</li>
</ul>

These allocations demonstrate the government's holistic approach to industrial development, addressing various aspects such as intellectual property, specific industries, and regional development.

National Manufacturing Mission

The Finance Minister also announced a national manufacturing mission to provide policy support, execute roadmaps, and establish governance and monitoring frameworks for the manufacturing sector. This mission aims to promote "Make in India" by creating a conducive environment for domestic manufacturing.

Impact on Infrastructure Development

The Union Budget 2025-26 also includes key announcements related to infrastructure and urban development. The government will launch an asset monetisation plan for the 2025-30 period, to infuse ₹10 lakh crore into new projects to boost infrastructure growth. Furthermore, urban sector reforms, including those related to governance, urban land, and planning, will be incentivized to promote efficient and sustainable urban growth.

The Plug and Play facility along with the Industrial Infrastructure provisions outlined in the Union Budget 2025-26 represents a strategic push to accelerate industrial growth, attract investments, and support new entrepreneurs. With significant budgetary allocations and policy support, the government aims to create a robust manufacturing ecosystem that drives economic development and generates employment opportunities.