Besides emphasis on electricity distribution reforms and measures for gig workers, the Budget 2025 puts the spotlight on national manufacturing mission to support clean tech, improve value addition in solar PV modules, electric vehicle batteries, high voltage transmission equipment, wind turbines and grid scale batteries. 
With China controlling much of the clean tech supply chain, the mission will combine with the PLI schemes for solar PV modules and batteries, aiding those in the field of backward integration and operations that are scaling up. 
Further scaling up the reach of ‘Make-in-India’ initiative, the Budget 2025 once again has brought into focus the MSME sector. It has been the worst hit by GST with thousands of units in any given industrial areas in cities like Pimpri-Chinchwad going belly up. Considered to provide employment to up to 70 percent in the manufacturing MSMEs have not only been unable to sustain financially, they have not been able to innovate or invest in advanced machinery/equipment and upskilling the way they should have been. 
They also seem to have lost out on their ability to export or sustain the margin pressures that come with supplying goods to suppliers up the ladder. This has led to many Tier 1  or Tier 2 suppliers and OEMs – particularly in the auto sector which contributes most to GST collection and the manufacturing GDP of the country – to look at sourcing from China by installing either permanently or temporarily their sourcing personnel or agents there. 
Perhaps taking such practices into account, the Budget 2025 has focused on MSME sector in terms of their upliftment as it would in-turn help them to drive employment led innovation, energy supplies and exports. 
The custom duty on Lithium-ion batteries has been reduced and tax has been exempted for cobalt powder. 
On the Income Tax front, the Finance Minister announced in her speech that a New Income Tax Bill will be tabled in the Parliament soon. This bill is expected to exempt tax on income till INR 12,00,000. There will be TDS relief offered to senior citizens. 
Until the New Income Tax Bill in tabled in the Parliament and passed, the old Income Tax regime will continue to be valid. 
 

Image for representative purpose only.

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Servotech Renewable Power System has signed a Memorandum of Understanding (MoU) with the Haryana Enterprises Promotion Centre (HEPC), Department of Industries & Commerce, Government of Haryana. The agreement outlines a proposed investment of approximately INR 4 billion to expand its manufacturing and warehousing operations within the state.

The proposed CAPEX will be deployed in a phased manner over the next 24 to 36 months. The expansion targets several clean-technology and power segments that have been identified as core thrust areas under the state's new industrial policy.

The investment will scale Servotech's manufacturing capacity across electric vehicle (EV) chargers, solar products, battery packs, Battery Energy Storage Systems (BESS) and power electronics.

While the company is currently evaluating specific site locations within Haryana, the capacity expansion is intended to scale overall production volumes, improve operational efficiencies, deepen import substitution, and support growing domestic and export market demand. Under the terms of the MoU, the Haryana Government, via the HEPC, will provide single-window facilitation support and ease-of-doing-business assistance to streamline project implementation.

The project is projected to generate around 500 direct and indirect employment opportunities, contributing to Haryana's industrial and economic growth.

The MoU was finalised in the presence of the Chief Minister of Haryana, Nayab Singh Saini, during the official launch of the ‘Make in Haryana’ Industrial Policy 2026 in Gurugram on 1 June 2026. The event also introduced a compendium of nine separate sectoral policies designed to attract industrial and clean-energy investments to the state.

Raman Bhatia, MD, Servotech Renewable Power System, said, “We are delighted to partner with the Government of Haryana. Haryana has emerged as one of India’s most progressive investment destinations, and the launch of the Make in Haryana Industrial Policy 2026 reinforces the state’s commitment to industrial growth, clean-energy manufacturing and innovation. Our proposed INR 4 billion investment aligns with Servotech’s long-term vision of scaling renewable energy manufacturing capabilities and is a meaningful step towards our stated ambition of reaching INR 15 billion in revenue by FY2027. We believe this collaboration will strengthen our operational footprint and contribute to Haryana’s clean-energy ambitions and broader economic development.”

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It was in February 2024, Vietnam-based VinFast announced its plans to build an integrated electric vehicle manufacturing facility in Tamil Nadu, India. The facility spread across 400 acres would see an initial investment of USD 500 million over five years with a projected capacity to manufacture 150,000 vehicles annually. 

In August 2025, the company officially inaugurated its facility, which made the Tamil Nadu plant its third operational plant and the fifth project in its global manufacturing network.

And now in a matter of 10-months, the Vietnamese automaker has rolled out its 10,000^th made-in-India vehicle from its Tamil Nadu facility. The milestone was reached less than one year following the official inauguration of the manufacturing facility.

At present, the automaker has introduced three models for the Indian market – VF 6, VF 7 and VF MPV 7. It is also looking to introduce electric scooters and electric buses in India this year.

According to the company, the achievement highlights its team's capability and its ongoing commitment to developing sustainable mobility infrastructure within the Indian automotive market.

VinFast states that with the Tamil Nadu plant on stream, it is now moving closer to its sales target of 200,000 vehicles and its long-term production goal of 1 million vehicles per year by 2030.

Also read: Pham Nhat Quan Anh Succeeds Le Thi Thu Thuy As Chairman Of VinFast Auto

Amit Arora Joins VinFast India As Director O2O Sales

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JSW MG Motor India has started production of the MG Majestor, its D+ segment sport utility vehicle (SUV), at its manufacturing facility in Halol, Gujarat.

The SUV features a four-wheel-drive (4WD) system and triple differential locks to manage traction and control across terrain conditions. It is powered by a 2.0-litre twin-turbo diesel engine paired with an electronic drivetrain and includes advanced driver assistance systems (ADAS) for vehicle safety and control.

Pre-reservations for the vehicle have opened at a price of INR 41,000 on the company's website, with early customers receiving priority delivery timelines and vehicle previews.

The Halol assembly plant utilises automated manufacturing processes and quality control systems to handle the assembly of the vehicle's chassis, body panel alignment and mechanical components.

To support the vehicle rollout, the carmaker is introducing its ownership programme, which includes a 5-year unlimited-kilometre warranty package, 5-year roadside assistance service contract and 5 labour-free scheduled maintenance services.

Biju Balendran, Deputy MD, JSW MG Motor India, said, “The commencement of production of the MG Majestor marks a significant step for us as we move closer to introducing a new benchmark in the premium SUV space. With the Majestor, we are bringing together strong engineering, advanced capability and a commanding presence, aligned to the evolving expectations of customers. Built at our Halol facility with advanced processes and stringent quality systems, the Majestor is engineered to deliver high standards of durability, performance and reliability. We are confident it will resonate strongly with customers looking for both capability and refinement in their next SUV.”

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Yamaha Motor Co, has established the Robotics Business Support Division as a dedicated sales and service facility for its robotics operations in Gurugram, Haryana.

The facility operates within Yamaha Motor India Sales (YMIS), the entity responsible for the company's motorcycle and automotive product sales in the country.

The division was created to reinforce sales and service operations for Yamaha-branded robot products, streamline internal business processes and support further investment. The facility will initially focus on surface mount technology (SMT) assembly systems and industrial robots. Over the longer term, the company plans to build the necessary technical structures to handle semiconductor back-end processing equipment.

The Gurugram facility features a dedicated showroom designed to display Yamaha Motor’s robotics technologies. This space allows clients to view products and technical solutions firsthand, helping them assess application methods for their respective production sites. Through this initiative, the company aims to increase its brand recognition and capture a larger share of the expanding Indian manufacturing and robotics automation markets.

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