Finance Minister Nirmala Sitharaman took great care of the digital sector in her second digital budget. In Budget 2022, she has announced to reduce customs duty on many other electronic items including mobile phones, mobile chargers, transformers, camera lenses. These things will be cheaper with this decision. The Finance Minister said that the aim of the government is to increase the production of electronic items in India as much as possible.
Archit Agarwal, Co-founder, Crossbeats
The extension of 1 year for startups is a welcome move as it will, directly and indirectly, help to strengthen the ecosystem. The push to the manufacturing industry is a strategic move to reduce the dependence on imports and upgrade the capabilities of Indian manufacturers to meet the needs internally. It was nice to hear that the growth in the wearable market has been recognized by the government and custom duty calibration should bring more opportunities for domestic brands to provide unique options to the masses. Similarly, an extension of concessional tax regime by 1 year is a welcome move during the pandemic which is not showing any sign of deterrence.
Arnav Kishore, Co-Founder, Fire-Boltt
It is a welcome announcement by the Finance Minister to focus on the domestic wearable market and boost domestic manufacturing of such devices. This is in sync with the record growth registered recently by homegrown brands in the Indian wearable market, and would further encourage more Indian brands to come up with innovative offerings in the segment. We also welcome the decision to extend tax benefits for startups and the fact that startups are being considered the drivers of Indian economy’s growth.
Achin Gupta, Country Head/India, Zoook
The push towards manufacturing is a positive move to make India self-reliant and at the same time, the calibrated duty tax has put a 5% extra burden on importers. This move is in itself an indication of the government’s plan for India@100, where basic consumer electronics would be manufactured in India. The recent surge in the country’s wearables market is an indicator of success in the current scenario and the government too is targeting increased domestic manufacturing of wearable, hearable, and high growth electronic items. Also, this will create more jobs in IT sector which will be working closely in sync with hardware capabilities to match the market needs and innovate.
Arnav Mutneja- Director at Quantum Hi-Tech
The budget seems to create a level playing field for existing and upcoming brands in the market with a push towards creating domestic manufacturing capabilities. The move to calibrate tax structure for items like consumer electronics is a very novel move given the pandemic situation, as it will enable manufacturers to provide more and more lifestyle devices with advanced capabilities. The budget has given a balanced outlook of the economy in the years to come and we hope that the stress on the economy by COVID can be mitigated by this approach in a gradual but concrete manner.
Akhilesh Chopra Sales Director of Bluei
It is a welcome announcement by the Finance Minister to zero in on the homegrown wearable market and lift homegrown assembling of such gadgets. This is in a state of harmony with the record development enlisted as of late by local brands in the Indian wearable market, and would additionally urge more Indian brands to think of inventive contributions in the section. We additionally welcome the choice to broaden tax reductions for new businesses and the way that new companies are being viewed as the drivers of Indian economy’s development.
Ameen Khwaja, Founder & CEO, pTron
The Union Budget has ushered in positive measures for the electronics sector which will give a boost to the sector, especially in the context of Make in India. The #AatmanirbharBharatkabudget with a huge boost to “Make in India” shall generate 6 million jobs and further create competent and skilled manpower that shall compete globally in terms of the quality of goods manufactured.
The electronics manufacturing industry is expected to see 30 percent growth in the coming fiscal and to be worth nearly ₹7 lakh crore. It is heartening to see that the Government of India has acknowledged the exponential potential of this sector. There has been an increase in prices of electronics, smartphones especially, owing to the ongoing chip shortage and other COVID-19 induced factors. With duty concessions and domestic manufacturing boost, prices of electronics are expected to decrease which will further boost the demand in the coming days.