Madhya Pradesh Industries Look to Union Budget 2026 for Competitive Edge and Employment Boost
As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2026, industries across Madhya Pradesh are expressing high expectations for measures that will strengthen their competitiveness, expand industrial infrastructure, and support employment generation. Key sectors including footwear, confectionery, automobile, mattresses, plastics, and general manufacturing are particularly focused on this year's budget announcements.
Integrated Industrial Parks and PLI Expansion Top the Wishlist
A major expectation from the budget is the development of integrated industrial parks in the state. These parks would offer common facilities, enhanced logistics connectivity, and plug-and-play infrastructure to reduce project costs and fast-track new investments. Rajeev Agrawal, a mattress manufacturer based in Mandideep near Bhopal, emphasized the need for expansion of production-linked incentive (PLI) schemes and a broader manufacturing push. He stated, "Increasing the ambit of PLI, establishing more industrial parks in MP, and simplifying taxation for small industries would significantly help in scaling operations."
Skill Development and Subsidy Disbursal Concerns Addressed
Industry associations have highlighted that enhanced allocation for skill development remains another critical expectation, especially for labour-intensive sectors such as footwear, food processing, and auto components, which currently face shortages of trained manpower. Girish Punjabi, president of the Indore Footwear Manufacturers Association, noted that in sectors dependent on skilled labour, there should be proper and easy access to training programmes to help industries match global standards.
Additionally, industries have raised concerns over delays in subsidy disbursals. Parag Kheir, a plastic mould manufacturer supplying to the pharmaceutical industry, explained, "Delayed release of subsidies blocks working capital and disrupts cash flow for small-scale industries. A time-bound mechanism should be implemented to address this issue."
Specific Sectoral Demands and MSME Support
Dinesh Choudhary, president of the Indore Confectionery Manufacturers Association, pointed out that the food sector is seeking budget support for technology upgradation, modern packaging facilities, and simplified compliance to meet food safety standards amid rising input costs.
For MSMEs, there is a strong call for hand-holding to grow and sustain. Ramesh Vyas, a plastic manufacturing industrialist from Gwalior, advocated for faster approvals, improved infrastructure, and easier access to institutional finance for emerging industrial clusters. He remarked, "MSMEs need comprehensive support to thrive in the competitive market, and the budget should facilitate this through streamlined processes and financial assistance."
As the budget speech approaches, stakeholders in Madhya Pradesh's industrial landscape remain hopeful that these key areas will receive focused attention, paving the way for enhanced growth, job creation, and global competitiveness in the coming fiscal year.
