Budget encouraging electronics ecosystem, says Electronic Industries Association of India

New Delhi, Feb 2 (KNN) The Annual Union Budget, is no longer limited to ‘annual’ policy document tweaking tax rates and procedures or limited to announcing budget allocations for key sectors instead it has become a long term policy document outlining the roadmap of the government. 

The Budget now provides impetus to the long term vision and goals which would determine the future of our country, economic as well as social, complemented by the required physical and digital ecosystem, said Electronic Industries Association Of India in its press release.

The Budget provides a thrust to the electronics sector and it is heartening that several steps have been taken in this direction. At the macro level, the focus on enhancing and creating new digital platforms will lead to growth in demand for electronics.

Outlay for capital expenditure has been stepped up sharply with a 35.4% jump in capex to 7.5 lac crores. This will bolster economic growth, infra projects and employment opportunities. The projected capital expenditure is 4% of GDP  association further added.

Major announcements and budget allocations have been made in key areas such as support to R&D through public funding, extending concessional tax support to startups and new manufacturing enterprises, marginal reduction in surcharge on corporate tax are all welcome steps, said Rajoo Goel, Secretary General at ELCINA.

The announcement notifying PMP Schemes for Wearable and Hearable devices, a rapidly growing market segment in electronics as well as Smart Meters is a timely move and will put these high growth sectors on track for domestic value added manufacturing. It is encouraging to see the government making early moves to encourage investing in these products.

The PLI Scheme for Solar Photovoltaics is another relevant extension of the highly successful PLI Scheme/s of Government of India. Electronics and power management equipment and components will see significant growth due to this Scheme.

At the granular level, ELCINA thanked the government for considering several recommendations and introducing changes in duties on inputs through Customs duty in several products.

This change will impact several electronic components and equipment such as Capacitors, Resistors, LED/LCD Displays, PCB’s, Mobile phone adapters, Photovoltaic cells and many more.

ELCINA's focus is to support the value chain for Consumer Electronics, Telecom and Computers/ IT correlating their common interest with that of equipment, material and machinery producers for expansion of manufacturing. (KNN/AT)