Key Highlights
- Customs duty on mobile phones and components cut to 15 percent
- Launch of PM Surya Ghar Muft Bijli Yojana and a Rs. 1,000 crore fund for space tech
- Emphasis on higher education and job creation
Today, the Union Budget for 2024–25 was presented by Finance Minister Nirmala Sitharaman. This marks her seventh Budget presentation and the first one under the third NDA government. Presented a day after the Economic Survey for 2023-24, it aims to boost economic growth and investment in the country.
Also Read | Ayushman Bharat Yojana: Here’s How To Apply For India’s Health Insurance Scheme
Reduced Duties On Mobile Phone Components
One of the major announcements in the tech sector is the reduction of customs duty on mobile phones and related components. The basic customs duty (BCD) on mobile phones has been cut to 15 percent. Similarly, the BCD on printed circuit board assemblies (PCBA) and mobile chargers has also been reduced to 15 percent. This move is expected to make mobile phones and their accessories more affordable for customers.
Changes In Telecom Equipment Duties
The Union Budget raised the tax on PCBA for telecom equipment from 10 percent to 15 percent while lowering the duty on components for mobile phones. The goal of this adjustment is to support domestic manufacture and lessen reliance on imports, which will strengthen the telecom sector at home.
Promoting Solar Technology
The government’s commitment to renewable energy is also emphasized in the budget. Up to 300 units of power per month will be available to 1 crore houses through the recently announced PM Surya Ghar Muft Bijli Yojana, which will give them access to rooftop solar technology. The goal of this program is to lower home carbon footprints nationwide and increase access to solar energy.
MSME Sector Boost
A credit guarantee program for MSMEs (Micro, Small, and Medium Enterprises) is introduced in the Union Budget 2024–25. This program permits term loans without the need for collateral or third-party assurances. Public sector banks will build internal resources to evaluate the creditworthiness of SMEs. Furthermore, the mandated onboarding of MSME customers on the TReDS platform now only requires a turnover barrier of Rs. 250 crore instead of Rs. 500 crore.
Pawan Kumar, CEO of Elista, applauds the Budget’s measures for the MSME sector. He highlights the introduction of credit guarantee schemes, which will facilitate term loans for machinery and equipment purchases without the need for collateral. Kumar said, “this initiative, facilitating term loans for the purchase of machinery and equipment without the need for collateral, is a significant step forward in the manufacturing sector. The guarantee fund providing guarantees of up to Rs. 100 crore will undoubtedly bolster the manufacturing industry, fostering growth and innovation.”
Boosting Space Development
In a significant move for the space sector, the government will set up a venture capital fund of Rs. 1,000 crore. This fund is aimed at growing the nascent space technology sector in India. The government plans to increase the space economy five-fold within the next decade, benefiting Indian firms and several startups related to space technology.
Also Read | Want To Check PMAY Status Online? Here’s How To Do It
Focus On Higher Education And Employment
The Union Budget 2024-25 also places a strong emphasis on higher education and employment. While specific details were not provided in the initial announcement, the focus on these areas indicates a push towards developing a skilled workforce and creating more job opportunities in the tech and other sectors.
Industry Quotes
CP Khandelwal, Joint Managing Director – HTech said in a statement, “The government’s decision to reduce the Basic Customs Duty on mobile phones, PCBs, and chargers to 15% marks a pivotal moment for our technology sector. This strategic move recognizes the significant maturation of the Indian mobile industry in recent years and is set to attract global value chains to our shores, enabling large-scale manufacturing operations.”
He further adds, “These measures collectively ensure a more resilient and innovative ecosystem, benefiting both the industry and consumers. This budget has not only addresses current challenges but also lays the groundwork for a prosperous and self-reliant India in the years to come.”
Separately, Rajeev Singh, Managing Director, BenQ India and South Asia quoted “For display and interactive tech companies, which provide interactive flat panels and other technological solutions for educational institutions, this budget presents significant opportunities. The focus on upgrading ITIs and enhancing skill development aligns with the mission to support educational advancements through technology.
Adding on he said, “By integrating interactive learning tools into these upgraded institutions, tech companies can contribute to creating an engaging and effective learning environment that fosters skill acquisition and prepares students for future challenges. This alignment between government initiatives and private sector capabilities is crucial for driving educational transformation in India.”
For the tech geeks, stay updated with the latest cutting-edge gadgets in the market, exclusive tech updates, gadget reviews, and more right on your phone’s screen. Join Giznext’s WhatsApp channel and receive the industry-first tech updates.
