Union Budget 2025: ₹1.1 Lakh Crore Boost for Footwear & Leather Sectors, 22 Lakh Jobs, and ₹20,000 Crore for R&D to Drive Innovation

The Union Budget 2025 focuses on boosting the footwear and leather industries with a ₹1.1 lakh crore scheme, creating 22 lakh jobs. It also allocates ₹20,000 crore to foster private sector-led research and development, particularly in deep tech. Additionally, initiatives in healthcare, education, and digital growth aim to position India as a global leader in innovation.

CONTENTS:

• Union Budget 2025: Focused Product Scheme to Boost Footwear and Leather Sectors, Enhance Exports and Create 22 Lakh Jobs
• Union Budget 2025: Key Initiatives to Boost Textile, Apparel, Footwear, and Leather Industries, Create 22 Lakh Jobs
• Union Budget 2025: ₹20,000 Crore Allocated to Boost R&D Fund, Strengthen Private Sector Innovation
• Union Budget 2025 Focuses on Advancing Cancer Care, Medical Education, and Innovation
• Union Budget 2025: A Vision for Growth, Innovation, and Global Ambitions

Union Budget 2025: ₹1.1 Lakh Crore Boost for Footwear & Leather Sectors, 22 Lakh Jobs, and ₹20,000 Crore for R&D to Drive Innovation

Union Budget 2025: Focused Product Scheme to Boost Footwear and Leather Sectors, Enhance Exports and Create 22 Lakh Jobs

Union Budget 2025: ₹1.1 Lakh Crore Boost for Footwear The Union Budget 2025 has introduced a focused product scheme for the footwear and leather industries, aimed at boosting productivity, competitiveness, and exports, with projections exceeding ₹1.1 lakh crore. According to the Council for Leather Exports (CLE), the initiative will support key areas such as design capacity, component manufacturing, and machinery, while also fostering job creation, with an estimated 22 lakh employment opportunities.

CLE Chairman Rajendra Kumar Jalan highlighted that the scheme is expected to drive sectoral investments, enhance production efficiency, and contribute to a total turnover of ₹4 lakh crore. Additionally, the government’s decision to eliminate the 20% export duty on crust leather and the 10% import duty on wet blue leather is expected to strengthen the tanning industry and promote the export of value-added leather products.

Industry leaders have welcomed the move, with Chennai-based leather exporter Rafeeque Ahmed of Farida Group stating that the initiative is timely and will support the sector’s gradual recovery. He anticipates exports to reach $5.2 billion this year, up from $4.69 billion in 2023-24. Similarly, Kanpur-based Growmore International Ltd’s MD Yadvendra Singh Sachan emphasized that these budget measures will significantly enhance manufacturing and exports.

Union Budget 2025: Key Initiatives to Boost Textile, Apparel, Footwear, and Leather Industries, Create 22 Lakh Jobs

Union Budget 2025: ₹1.1 Lakh Crore Boost for Footwear The Union Budget 2025 has introduced key initiatives to support the textile, apparel, footwear, and leather industries, including a new Mission on Cotton and a focused product scheme for the footwear and leather sector.

Finance Minister Nirmala Sitharaman announced that the focused product scheme aims to improve productivity, quality, and competitiveness in the footwear and leather industry. It will provide support for design capacity, component manufacturing, and machinery essential for producing both leather and non-leather footwear, as well as other related products.

The initiative is projected to generate a turnover of ₹4 lakh crore and boost exports beyond ₹1.1 lakh crore, while also creating employment opportunities for approximately 22 lakh individuals.

Union Budget 2025: ₹20,000 Crore Allocated to Boost R&D Fund, Strengthen Private Sector Innovation

Union Budget 2025: ₹1.1 Lakh Crore Boost for Footwear The Union Budget 2025 has allocated ₹20,000 crore to the Department of Science and Technology (DST) as an initial corpus to launch the ₹1 lakh crore research and development fund, reaffirming the government’s commitment to fostering innovation.

Finance Minister Nirmala Sitharaman, while presenting the budget, emphasized that this fund aims to drive research and development in deep tech and emerging sectors, with a strong emphasis on private sector-led initiatives.

“To implement the private sector-driven Research, Development, and Innovation initiative announced in the July budget, I am now allocating ₹20,000 crore,” Sitharaman stated.

As part of this strategy, the government will also explore a Deep Tech Fund of Funds to support next-generation startups, further strengthening strategic autonomy in key technological domains.

Abhay Karandikar, Secretary of the DST, noted that this allocation represents a significant push to enhance private sector participation in research and development, an area where investment has remained relatively low despite government incentives.

The Economic Survey presented earlier flagged concerns regarding the private sector’s limited expenditure on R&D, with the government currently contributing 50% of the total spending, while businesses account for just 41%.

To support these initiatives, the DST’s budget allocation has surged from ₹8,029 crore to ₹28,508.90 crore. Other key allocations include:

• Department of Biotechnology: ₹3,446.64 crore (up from ₹2,275.70 crore)
• Department of Scientific and Industrial Research: ₹6,657.78 crore (compared to ₹6,323.41 crore)
• Department of Atomic Energy: ₹24,049.10 crore (down from ₹24,968.98 crore)
• Department of Space: ₹13,416.2 crore (up from ₹13,042.75 crore)

Additionally, the Indian Space Research Organisation (ISRO) has been granted ₹10,230.2 crore for key centers and projects, including launch vehicle development. Space applications received ₹1,706.8 crore, supporting various research and remote sensing initiatives.

Union Budget 2025 Focuses on Advancing Cancer Care, Medical Education, and Innovation

Union Budget 2025: ₹1.1 Lakh Crore Boost for Footwear  The Union Budget for 2025, presented by Finance Minister Nirmala Sitharaman on February 1, places a significant focus on improving cancer treatment, expanding medical education, and promoting innovation.

A major announcement includes the creation of Day Care Cancer Centres in all district hospitals over the next three years, with 200 centres planned for the year 2025-26. This initiative aims to decentralize cancer treatment, making it more accessible across India. In addition, 36 life-saving cancer drugs and treatments for rare and chronic diseases will be exempt from Basic Customs Duty, which will reduce treatment costs and improve affordability.

Dr. Azad Moopen, Founder of Aster DM Healthcare, welcomed the move, emphasizing that these centres would improve early intervention and outcomes. Meanwhile, experts like Joy Chakraborty from P.D. Hinduja Hospital stressed the need for specialized staffing and efficient supply chains to implement these changes successfully.

In the education sector, the government announced plans to add 10,000 new medical seats next year, with a total of 75,000 seats over the next five years. This increase aims to address the growing demand for healthcare professionals. While this move is seen as positive by many, some experts, such as Prof. Dr. Raj Nagarkar, raised concerns about the impact on education quality and the need for adequate infrastructure and trained faculty.

The budget also includes the establishment of a Centre of Excellence in Artificial Intelligence for Education with a ₹500 crore outlay, along with 50,000 Atal Tinkering Labs in schools to foster innovation. Additionally, 5 National Centres of Excellence for skilling will be set up to meet the growing demand for skilled workers, particularly in the “Make for India, Make for the World” initiative.

To boost research and development, ₹20,000 crore has been allocated for private sector-driven R&D, and a National Manufacturing Mission will support various industries. In healthcare, the Department of Biotechnology saw a significant increase in funding to support biomanufacturing and research.

Medical tourism is another focus, with the government planning to promote India as a global hub through the “Heal in India” initiative, which will be supported by improved visa norms and private sector collaboration.

However, some industry leaders, including Rajiv Nath of AiMeD, expressed disappointment that the medical device sector did not receive more attention, particularly regarding investment promotion and tariff protection. Others, like Ameera Shah of Metropolis Healthcare, called for further reforms in healthcare, such as rationalizing GST and expanding tax exemptions for preventive care.

The budget has been seen as a strong foundation for healthcare and education reform, but experts continue to highlight areas that require more attention to ensure India’s healthcare system meets future demands.

Union Budget 2025: A Vision for Growth, Innovation, and Global Ambitions

Union Budget 2025: ₹1.1 Lakh Crore Boost for Footwear The Union Budget 2025-26 outlines significant investments and initiatives aimed at fostering innovation, boosting digital transformation, and positioning India as a global technology leader. The key highlights include support for startups, fintech, and deep-tech industries, along with strategic shifts towards sustainable energy, manufacturing, and education.

Key Highlights:

• Support for Startups and Fintech: Introduction of a ‘Fund of Funds’ and a revamped central KYC system to improve transparency.
• Economic and Credit Expansion: Focus on liquidity for MSMEs, farmers, and a transition to cashflow-based lending for stability.
• Make in India and Manufacturing: The launch of the National Manufacturing Mission will enhance domestic production and employment.
• AI & Deep Tech Investments: ₹20,000 crore allocated for R&D and AI-driven education, with a focus on advancing India’s role in emerging technologies.
• Global Capability Centres (GCCs): A national framework to promote India as a digital hub.

Industry Reactions:

• Dr. Ajai Chowdhry (Founder, HCL) expressed mixed reactions, noting the budget’s support for startups and deep tech, but emphasizing a lack of focus on electronics and chip manufacturing, which are critical for strategic autonomy.
• Atul Soneja (COO, Tech Mahindra) praised the budget’s focus on AI, global capability centres, and next-gen tech initiatives, which will foster talent and infrastructure in tier-2 cities.
• C.P. Gurnani (CEO, AIonOS) welcomed the allocation for AI, innovation, and MSME support, seeing it as key to India’s growth and global competitiveness.
• Sunil Gupta (CEO, Yotta Data Services) highlighted the ₹500 crore investment for AI education and the government’s commitment to renewable energy and clean technologies, which will benefit sectors like data centers.
• Sridhar Pinnapureddy (CEO, CtrlS Datacenters) emphasized the importance of infrastructure loans and AI investments for digital economy growth, alongside clean energy commitments for datacenters.
• Akash Sinha (CEO, Cashfree Payments) highlighted the budget’s positive impact on the fintech ecosystem, with initiatives like the Fund of Funds and the revamped KYC system boosting transparency and trust.
• Jaya Vaidhyanathan (CEO, BCT Digital) commended the budget’s focus on economic resilience, inclusive development, and export competitiveness through digital trade infrastructure and MSME credit expansion.

Key Initiatives for Digital Growth:

• Bharatiya Bhasha Pustak Scheme: Digital books in Indian languages to enhance educational access.
• Gyan Bharatam Mission: Preservation and digitalization of over 1 crore manuscripts, contributing to the National Digital Repository.
• BharatTradeNet (BTN): A unified digital platform for international trade to streamline documentation and financing solutions.
• AI Centres of Excellence in Education: ₹500 crore to enhance AI-led learning and innovation in education.
• Global Capability Centres (GCCs): Framework to promote GCCs in tier-2 cities, focusing on talent availability, infrastructure, and industry collaboration.

Union Budget 2025: ₹1.1 Lakh Crore Boost for Footwear Overall, the budget aims to position India as a global leader in technology, digital infrastructure, and innovation, with a focus on AI, deep tech, education, and sustainable growth.