By Rajesh Mehta
India is poised to present a transformative Union Budget for 2025, with a strategic emphasis on fostering growth in sunrise sectors such as pharmaceuticals, electronics, renewable energy and zinc production for its emerging battery applications and technologies. This budget represents a pivotal opportunity for the government to allocate resources and implement policies that will stimulate domestic manufacturing and drive sustainable economic development. By prioritizing investments in these key industries, India can enhance its self-reliance and reduce dependency on foreign suppliers, thereby positioning itself as a stable and attractive destination for trade and investment.
The current geopolitical climate has raised questions about the reliability of certain trade partners, particularly in light of recent political instability in South Korea. This situation poses risks to established supply chains, emphasizing the need for India to bolster its domestic production capabilities. Approximately 25% of India’s zinc demand is currently met through imports from South Korea, making it essential for India to prioritize local production to ensure consistent quality and supply. By focusing on domestic manufacturing, India can mitigate risks associated with global supply chain disruptions and enhance its competitive edge in the zinc production sector.
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In the coming years, India should concentrate on several sunrise sectors that promise substantial growth potential. The zinc production sector is particularly significant due to India’s abundant reserves and strong manufacturing base. With a growing demand for zinc across industries such as infrastructure, automotive, and renewable energy, India is well-positioned to capitalize on this resource. Additionally, India has long been a global leader in pharmaceuticals and can further strengthen its position by addressing supply chain vulnerabilities exposed by geopolitical tensions. In the realm of electronics and semiconductors, India’s investment through initiatives like the Production-Linked Incentive (PLI) scheme positions it well to meet both domestic and international demand. Moreover, India’s commitment to sustainable development can be reflected in its expansion of the renewable energy sector, focusing on solar and wind power technologies. These sectors not only promise economic growth but also align with India’s vision of achieving self-reliance.
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Zinc plays a crucial role in various industries, particularly in corrosion protection for steel used in public infrastructure projects. India’s production capacity of zinc exceeds domestic demand, allowing it to be a net exporter. However, given the recent political unrest in South Korea and its implications for export reliability, India must prioritize its domestic zinc production. This approach ensures consistent quality and supply while reducing carbon footprints associated with importing zinc from distant regions. Furthermore, innovations in zinc-based alloys could enhance India’s competitive edge in this sector. By focusing on local production capabilities and developing advanced materials, India can reduce its reliance on imports while meeting international quality standards.
In the year 2025, there is significant potential for boosting its economy through targeted investments in key sectors such as zinc production. With forecasts indicating moderate GDP growth amid global uncertainties, a strategic focus on domestic manufacturing can catalyze economic resilience. The government’s commitment to infrastructure development will further stimulate demand for zinc as it plays an essential role in construction projects. Additionally, advancements in technology and renewable energy will create new avenues for growth that can complement India’s traditional strengths. By harnessing these opportunities effectively, 2025 could emerge as a pivotal year for India’s economic transformation.
While South Korea has been recognized for its technological prowess in electronics and semiconductors, the current political instability threatens its position within global supply chains. Conversely, India is rapidly advancing its technological capabilities through significant investments in indigenous technology development. This includes fostering innovation in sectors such as electronics and renewable energy. India’s strategic focus on enhancing manufacturing capabilities will allow it to emerge as a competitive player in global markets. By attracting investments through government initiatives aimed at boosting domestic production, India can reduce reliance on foreign technology while building a resilient economy.
As India approaches 2025, it stands at a crossroads where it can turn challenges into opportunities for growth through the union budget’s strategic focus on enhancing domestic production capabilities in critical sectors such as zinc production, pharmaceuticals, electronics, and renewable energy. By doing so, India can not only fulfil its domestic needs but also position itself as a reliable partner in global trade. The government’s proactive economic strategies and focus on self-reliance will offer businesses a sustainable alternative amid global uncertainties, paving the way for sustained growth and leadership on the global stage.
(The author is an International Affairs expert working on areas like Market Entry, Innovation & Public Policy. Views expressed are the author’s own and not necessarily those of financialexpress.com.)