Here’s what the Top Industry Leaders analyse the Budget 2023
Finance Minister, Ms Nirmala Sitharaman has outlayed the Budget 2023:
- The finance minister has stayed on the path of fiscal consolidation, budgeting to bring the deficit down from 6.4 per cent of GDP in 2022-23 to 5.9 per cent in 2023-24. As per the glide path elaborated by Nirmala Sitharaman, the deficit is projected to come down to 4.5 per cent in 2025-26
- The proposal to set up 30 skilling centres in the Union Budget has gone down well with the manufacturing sector. It is being viewed as a way to create a global talent base out of India
- Capital outlay of ₹2.40 lakh crore has been provided for Railways, the highest ever outlay is about nine times the outlay made in FY 2013-14
- The Centre’s move to halve the basic customs duty on specified parts of open cells of TV panels to 2.5 per cent will boost domestic manufacturing of televisions
- Finance Minister Nirmala Sitharaman in her Budget speech stated that this is being done to promote value addition in the manufacturing of television. Earlier, the basic customs duty on these specified parts was at 5 per cent.
Mobility India Magazine has spoken to the various veterans in Top Industry Leaders and here is what they share on Budget 2023:
Mr. Amit Khatri, Co-Founder, Noise
The Union Budget, introduced as a framework to steer the Indian economy and foster growth, has proposed noteworthy initiatives to ensure holistic development along with a significant boost to taxpayers. Despite global challenges and macroeconomic downturns, the Indian economy has been projected to grow at 7%, indicating the benchmark that we have set across sectors with start-ups with MSMEs being recognised for their efforts.
In order to realize the vision of making AI in India and make AI work for India, the three Centers of Excellence for artificial intelligence being set up offer a massive opportunity for the technology industry and will further boost R&D capabilities of the country, enabling technology brands to strengthen their innovation efforts. We hope this will give us an opportunity to truly Make in India, for the world.
The government has also taken some extensive initiatives in skill development and has catered to STEM education and will be launching PMKVY 4.0 to skill lakhs of youth within the next three years, building a robust army for Industry 4.0 which will accelerate the vision we have seen together for an Aatmanirbhar Bharat.
With a continued focus to support start-ups and recognise them as a major driver of the economy, measures such as extending the date of incorporation for income tax benefits and enabling start-ups to carry forward losses to 10 years will be highly beneficial for the ecosystem players. Lastly, the new income tax regime offering up to INR 7 lakh rebate and reducing the number of basic custom duties from 21 to 13 will spur consumption of products across sectors in the economy and will set the precedent for a vibrant 2023 for start-ups and the technology industry.
Mr. Vikas Jain, Co-Founder, PLAY Design Labs
A very sensible budget presentation and the FM has been considerate to the common man and industry alike. There is massive commitment of job creation and infrastructure spending which is very well received for India. Modification to the income tax slabs is a delight for the citizens and should encourage more citizens to declare their income statement. Most the industry is well taken care of and focus on strengthening manufacturing is evident. We hope to see some focus and action on the “cost of capital” in future budgets and themes. Backing manufacturing by incentivizing R&D/Design could have been a great addition and we remain hopeful for outlay for design in the forthcoming edition.
Mr. Sanjeev Bhardwaj, Founder and CMD of ERD Group
We are quite happy and contented with the budget 2023 which the finance minister has announced. The government has proposed basic customs, excise duty cuts on a range of products including mobile phone and television parts. This will help in boosting the economy of the country.
Mr. A. Gururaj, MD, Optiemus Electronics Ltd.
This year’s budget is a strong effort to consolidate the Indian economy in post-pandemic dynamics, raising the personal tax exemption limit will certainly boost consumption and the electronics industry will surely benefit from it. Continuing the import duty cuts on Camera Lens and batteries for mobile manufacturing is a welcome step and this will continue to fuel the remarkable growth India has witnessed in domestic manufacturing.
Mr. ISHWAR KUMHAR, Director, Brandworks Technologies Pvt Ltd
Overall, there are positive vibes and it clearly demonstrates the government’s intentions towards the growth of the country and the electronics industry. The government has reduced the basic customs duty on imported mobile phone parts, such as camera lenses, and extended the concessional duty on lithium-ion cells for batteries for another year. This is a positive move for the market as it will encourage domestic manufacturing.
The manufacturing ecosystem in India is being established and it is expected that India will become a leader in the world of manufacturing in the coming years. Brandworks aligns well with government policies and is actively involved in the growing manufacturing ecosystem.
Mr. Sitaram Patel, CMD, Ionotronics Digital Pvt. Ltd
The Union Budget 2023 has given prominence to digital infrastructure with strong focus on sustainable growth of the country. The intent is for building an ecosystem and focus is to promote local manufacturing specially for LED TV & mobile manufacturing industry, Basic customs duty reduced on mobile components & open cells of TV panels to 2.5 per cent this will help the value addition.
Mr. Atul Gupta, Managing Director, Lapcare
Finance Minister Nirmala Sitharaman communicate about the budget stating that the move is to further deepen domestic value addition in manufacture of mobile phones. This will definitely help India to move ahead of the curve in terms of manufacturing
Mr. Avneet Singh Marwah, CEO and Founder at SPPL ( Super Plastronic Pvt. Ltd.)
Customs duty on open cells of TV panels cut to 2.5 percent
This is a welcoming move by the government of India to reduce customs duty on the open cell to 2.5%, we will pass this benefit to customers. Television prices can come down up to Rs 3000 on larger screens.
With one of the best budgets in the last 4 years, the government is pushing electronic manufacturing in India. Feel good factor for all sections, welcoming the move to reduce customs duty to 2.5 % this will reduce the price of tv by 5%.
Mr. Manish Sharma, Chairman, Panasonic Life Solutions India,
Union Budget 2023 heralds’ good news for both industry and the common man. Honourable FM continues to focus on investments and policies keeping the USD 5 trillion economy ambition in line of sight. Balancing both the strategic and tactical announcements, this budget lays impetus on the seven key priority areas. From investments in setting up CoE for AI in top universities, 100 labs for 5G applications, Rs 35,000 cr for energy transition to concessions on equipment for Lithium-Ion cells. It is encouraging to see reduction in custom duties for inputs/parts of certain electronic items like lithium-Ion batteries, TV, Camera Lens will improve the feasibility for enhancing backward integration and subsequently enabling local manufacturing of electronics.
Mr. Paresh Vij, Founder of U&i
The Budget is quite appealing and we welcome it since it’s a visionary one and will give a very good impetus to the manufacturing sector. This will provide a much-needed boost and help us compete at a global level, leading to increased domestic manufacturing and exports. This Budget will help the existing manufacturers and International brands also to trade in India and soon India will become the export hub in the world.
Ms. Midhula Devabhaktuni, Co-Founder and CMO of Mivi
Budget 2023 envisions a futuristic India that will be greener and more sustainable. The Green Growth initiative highlights the efficient use of energy across various economic sectors. These green growth efforts will help in reducing the carbon intensity of the economy and providing for large-scale green job opportunities, something that we are emulating for our new resource set-ups in Hyderabad. Additionally, the new initiatives for Make AI in India and Make AI work for India will aid in the development of cutting-edge applications and scalable solutions that will help create more employment, opportunities in India.
Mr Arijeet Talapatra, CEO at TRANSSION India
The Union Budget allocation towards the development of electronics manufacturing clusters and implementation of the National Policy on Electronics, along with the reduction of customs duty on certain components, is a major step forward for the industry. This will provide a much-needed boost and help us compete at a global level, leading to increased domestic manufacturing and exports of smartphones. This is a move towards democratizing technology aligned with itel’s vision and transitioning towards a smartphone & digital economy.
Mr. Mandeep Arora, MD & Co-Founder, UBON
The 1st budget of Amrit Kaal by honourable Finance Minister Nirmala Sitharaman is well divisional. Starting from skilling for youth, job creation, senior citizens, and digitalization to MSMEs this budget is unturned every stone. Envisioned as modinomics, the budget came with high hopes.
For the manufacturing and electronics industry, this will be a big relief, as customs duty on many electronics parts imports has been reduced. This means mobiles and consumer electronics will be low cost from now. This will help in value creation, employment generation, and better productivity and provide affordable electronics for Indian consumers. Emphasizing on skill development and value-based knowledge through digital platforms for free is another step to support youth.
MSMEs are mentioned as growth engines of the country and I appreciate equal attention of the government on failed businesses also. This will help the sector grow with the back support of the government. A 1% reduction in the cost of the MSME credit guarantee will help the industry to grow as well. The infrastructural development has given a major part of the budget, we expectthat the government will allocate some funds for the development of more industrial areas and upgrading their infrastructure for MSME.
However, Industry is a bit disappointed as Industry was expecting announcements related to Incentives for domestic design, Expanding the PLI scheme, and strengthening the supply chain which was the need of the hour. We hope the government will consider our request in the next budget and support the industry in becoming a global manufacturing hub and achieving the Atmanirbhar Bharat dream
Mr. Gopal Jeyaraj, Country Head – SAARC, Promate Technologies
The Union budget 2023 provided impetus to localised manufacturing, this move will definitely help in boosting manufacturing in India and the lowering of custom duty on components also implies that the government is supporting brands and strengthening make in India.
Mr. Rajesh Doshi, Director and Co-Founder, Zebronics
“The Union Budget 2023 was presented by the Union Finance Minister Nirmala Sitaraman today. The budget is being received positively as a progressive step towards improving the economy. One of the notable changes is the increase in the tax slab limit from 5L to 7L, providing more purchasing power to the general public. The new tax regime also offers relief to law-abiding taxpayers. These rebates on income tax will infuse a new life in the economy. The reforms in agriculture and health sectors are expected to have a positive impact on the economy. Additionally, the budget introduces new tax reforms and incentives for the “Make in India” program, as well as duty rebates for manufacturing, like TV Panel, li-ion batteries etc, which are expected to drive growth in the modern electronics and mobility sector. These rebates will help in setting up the local electronics manufacturing ecosystem in the country, which is the need of the hour. We can surely see India becoming one of the manufacturing hubs in the world.”
Mr. Jitender Bhatia, MD & CEO, JBTek
The Budget 2023 has indeed been very intrusive and quite appealing. We look forward for a whole hearted support from the government as far as manufacturing is concerned. Proposed reduction in basic customs duty for electronic components for mobile phones, such as camera lens, etc., is in response to industry demand to reduce import duty on certain parts. Further, the continued concession on duty on lithium-ion cells for batteries will even keep the manufacturing industries interest in place. This would further help Companies approved under PLI for mobile phones and large-scale electronics to achieve sales targets under Production Linked Incentive Schemes. The budget proposed has also given high hopes and funds to the new start-ups and the relaxation in taxation will be attractive to the MSMEs and start-ups. Hence, promoting the young generation to bring more opportunities and creating more jobs in India.
The reduction in custom duty on certain mobile phone components will not only bring down prices but will also promote manufacturing in the country. A big thumbs up to budget for ‘Amrit Kaal’. It’s a budget for the middle class, Amrit Kaal and Aatmanirbharta. It’s a growth-oriented budget with focus on inclusive growth.
Ms. Nikita Kumawat, Managing Director, Brandworks Technologies Pvt Ltd
As a brand leader of Brandworks Technologies, I welcome the Union Budget 2023 and its focus on the manufacturing and consumer electronics sector. The government’s efforts to promote domestic production through tax incentives and financial support will go a long way in boosting the sector and making it more competitive globally.
The allocation of funds towards research and development in the technology sector will also help spur innovation and drive growth in the consumer electronics industry.
Additionally, the emphasis on digital infrastructure and the roll-out of 5G technology will provide new opportunities for companies like Brandworks Technologies to offer cutting-edge products and services to consumers.
Overall, the Union Budget 2023 has set a positive tone for the manufacturing and consumer electronics sector, and I am optimistic about its impact on the growth of our industry in the coming years.
Mr. Shivank Vishnoi, Head – Sales & Marketing, Electroline (Prachi Enterprises)
For instance, setting up of 30 Skill India International Centers across different States to skill youth for international opportunities will increase employment and set-up of Artificial Intelligence centres in top educational institutions to realise the vision of “Make Al in India and make AI work for India” will take our industries and our nation to greater heights.
The relaxation in customs duty for lithium cells will also be retained for another year is highly appreciated.
Government huge investment of 3000 crore for Indian Semiconductor Mission likely to help kickstart the development of the semiconductor and display manufacturing system in India.
Apart from this government initiative for One District One Product will help in economic stabilization in all the areas of the country.
Mr. Ameen Khwaja, Founder & CEO, pTron
The Union Budget 2023 is a progressive & far-sighted one that lays significant emphasis on supporting the growth of start-ups & proposes several measures aimed at fostering a favourable environment for startups to thrive & succeed. While there is no big-ticket announcement for the FMCE sector as a whole, there are still a few indirect positive impacts on the industry. As per the Economic survey of 2023, India is now the 2nd largest Mobile manufacturer in the World & also saw a 200% increase in rural internet subscriptions as against 158% in urban areas between 2015 & 2021. As announced in the Budget 2023, the GOI’s(Government of India) invested approach of “Reaching the last Mile” to make the remotest area connected and robust plan to leverage 5G services applications for a digitally strong tomorrow, shall further boost the internet penetration in the rural areas. This shall surely bring a new age of opportunity to the FMCE sector with promising growth due to an increase in demand for FMCE products.”
Ms. Vandana Seth , Managing Director , RV Solutions Pvt. Ltd
The reduction in tax slabs will increase the spending capacity of the individuals. This would definitely increase the buying of mobiles and consumer goods. Moreover the reduction in the duty for certain components in mobile and TV will result in reduction in prices also leading to more buying. The revamped credit guarantee scheme for MSME would also enhance business in general. Revamped credit guarantee for MSMEs to take effect from Apr 1, 2023 with infusion of Rs 9,000 crore in corpus. The scheme would enable additional collateral-free guaranteed credit of Rs 2 lakh crore and also reduce the cost of the credit by about 1 per cent. Some initiatives on women inclusion which will help in overall economy in the long run.
Mr. Rohit Nandwani – Founder, Hammer Lifestyle
As per Union Budget 2023, Custom duty on mobile phone parts has been reduced to boost local manufacturing. This is a great step keeping in mind that the mobile industry has already seen a spike in its production in the last financial year. This in turn will reflect in the mass production of mobile phones in India and hence will reach more corners of the country. There’s no denying the fact that the growth of the mobile industry is directly proportional to the growth of its accessory market. We look forward to going with the flow of this positive change by building an electronic ecosystem in India.
Mr. Akhilesh Chopra, Technology and Sales Director, Bluei
We welcome the Budget 2023 with open arms as we feel that its quite appealing for the common masses. Overall, it has tried to create the right balance to increase our GDP and control the rising inflation. Although, reducing the fiscal deficit will be a challenge, especially post the pandemic that has hit most sectors across countries, the initiatives taken will go a long way to mitigate it. However, we feel that had there been some relaxation in component part of manufacturing then it would have helped manufacturers to take it to the next level. Nevertheless we feel that there is a lot of focus on job creation through inclusive development.
Mr. Ujjwal Sarin, Founder & CEO, Nu Republic
The increased focus of the government on developing AI infrastructure in India is a great move as we move into 2023 and AI-powered, wear-tech reaches mainstream popularity. The reduction on custom duties for electronic components was long over-due and would greatly benefit the Mobility Industry as a whole.
Mr. Aashish Kumbhat, Co-Founder and Director, Inbase
This budget can rightfully be called the people’s budget. We are particularly happy with the government’s decision to reduce the import duty on the components & batteries. We are a young country, and access to technology would only make us stronger and the government’s this move is a step ahead in the positive direction.
This will help us as a brand in our endeavour to provide affordable premium electronic gadgets. We will be able to provide quality without increasing the cost. Overall, this is a great boost to the industry as a whole.
Lyne as India brand we welcome the budget with the idea -be Indian buy Indian products and support to the Country. Overall, there are positive vibes and it clearly demonstrates the government’s intentions towards the growth of the country and the electronics industry. The government has reduced the basic customs duty on imported mobile phone parts, such as camera lenses, and extended the concessional duty on lithium-ion cells for batteries for another year. This is a positive move for the market as it will encourage domestic manufacturing. The Union Budget allocation towards the development of electronics manufacturing clusters and implementation of the National Policy on Electronics, along with the reduction of customs duty on certain components, is a major step forward for the industry.
Mr. Pawan GOSWAMI, CEO- IMG
Reducing the cost of finance for MSME certainly a big step as major players in the industry are from MSME. On another side boost to local manufacturing where again MSME players will further enter. These both combined can give a whirlpool effect to our industry. Wishing for the days ahead when batteries and motherboards are Made In India and we export to the world and generative possible cash flow for the economy.
Mr. G Aditya Padman, Chief Cheer Leader & Co Founder, ServexPlus
The Govt this time wants you to go out and spend more (relaxation of income tax slab) wants you to talk more on smart phones (Reduction of custom duty rates on mobile phones ) and Watch your favourite OTT movies on #LEDTV ( Reducing the Tax rate on TV parts) also wants the people to opt for a Greener and sustainable transportation, by providing a huge boost to accelerate EV manufacturing in India, the honourable Finance Minister rightly exempting customs duty on import of capital goods and machinery. required for making li-ion cells for batteries used in EVs; and making the concessions on li-ion batteries to continue for another year.
A major focus this budget was on reskilling of youth on latest tech #AI #IoT #Mechatronics #Robotics etc. The priorities of the govt is on these 7 top items (Sapt Rishis) of Inclusive Development, reaching the last mile, infrastructure Investment, Unleash the potential, Green Growth, Youth Potential andFinancial Inclusivity. This is Definitely a well-defined progressive budget with a growth and development mind frame #Budget2023
Mr. Arvind Rathore, Director, OUD Mobiles
The budget has been quite interactive and seems to be supportive for manufacturing in India. It will not only help the existing manufacturer, but also aid the international companies to invest in India.
Mr. Saket Gaurav, Chairman and Managing Director of Elista and TeknoDome
The world has recognised India’s economy and it is on the right track. We welcome the move to reduce the custom duty on open cells of TV panels cut to 2.5 percent, thus making smart TV’s an accessible commodity. This move will not only help strengthen the ‘Make In India movement’ but will also empower companies like us who want to ‘Make in India’ for the world and compete with the volatile international panel market. This budget is also a pro-MSME budget. India has jumped in its rank of ease of doing business, and the current provisions to reduce more than 39,000 compliances will further help the cause and enable MSMEs to scale operations.
Mr. Kishan Mali, Founder & Managing Director, Varni
We welcome the budget that was presented today by the honourable Finance Minister in the parliament. This very encouraging and visionary budget will give the right impetus to various sectors across industries. The result of the various initiatives of the government, including phased manufacturing programs mobile production in India increased from 5.8 crore units valued at Rs 18,900 crore in 2014-15 to 31 crore units valued at Rs 2,75,000 crore in last financial year.We believe that it will give a boost to Indian manufacturing in India.
Mr. Sanjay Kalirona, Co-Founder and CEO, Gizmore
Smart wearables are expected to continue to drive consumer interest with increasing preference for a healthier and modern lifestyle. Technology plays an important role in developing these products with the latest features. The announcement from the Finance Minister to set up three Centres of Excellence for artificial intelligence will boost the infrastructure for AI in the country and its use in smart wearables. Investment in the ecosystem of building semiconductors in India will change the industry scenario from “import led” to “export house” and will make India self-reliant in the component industry. The indirect tax proposals are expected to boost domestic manufacturing and promote exports. In addition, the relief provided to the consumer by direct tax proposals like an increase in rebate limit to INR 7 lakh, increase in standard deduction and reduction of the highest surcharge rate will boost consumption levels in the country. Overall, it is a balanced Budget that sets the right tone for the Amrit Kaal
Mr. Supriy Poddar, Founder, Mozu
The Indian government this year has presented a growth-oriented budget with a special focus on boosting the manufacturing sector. This is really a welcome move by the Indian government. Budget looks very promising. For the electronics industry it is a welcome move, as custom duty on some parts of mobile phones has been reduced. Also concessional duty for lithium ion cells has been extended for one more year. This is a positive move for the industry. Focus has been done on MSMEs to boost manufacturing activities in India. It is a revolutionary budget that will give relief to every section of the society. We thank our honourable PM and FM for their long term vision and laying the foundation of a developed India.
Ms. Pallavi Singh Marwah, Vice President at SPPL (Super Plastronic Pvt. Ltd.) on custom duty on TV panels.
1, Big jump in cape
With the government announcing a 10 lakh crore capex budget, which amounts to 3.3% of the country’s GDP and the highest ever outlay for railways and development of over 50 airports, helipads, aerodromes, etc, it is evident that the government is focused on upgrading the country. This has been supported by the development of last-mile connectivity and a push to the tourism industry. There have been multiple schemes and allotments of budget towards entrepreneurial ventures and to the youth of our country as well as collateral-free credit to MSME’s. However, no support has been extended towards the existing private sector setups in policy terms.
The government’s initiative to Make AI for India is a welcome one and will help in achieving development in rural as well as urban areas. Policy support has been provided to all by reducing compliances and the suggestion to amend 42 central acts which will be a welcome change from an operational perspective.
2. Customs duty on open cells of TV panels cut to 2.5 percent
The reduction in duty on open cells is a very welcome one and will help in competing with the volatile international panel market as well. A reduction in GST for higher-sized televisions is still something we look forward to and urge the government to reconsider.
Mr. MUKADDAS SHAIKH, MPMRA Founder Chairman, International Entrepreneur & Philanthropist
The Budget 2023-24 by the central Government on doing business in 21st century is under the Rising Entrepreneurs, this will prove easy to do business at the international level, we welcome the very good and innovative policy issued by the central government
Mr. Kartik Agarwal, Founder & CEO, Staunch Electronics India LLP
Government will provide relief in customs duty on import of certain parts like camera lens and concession on import of lithium-ion batteries to further promote mobile phone production in India. We are quite confident that this will help the lithium manufacturers in India.
Mr. Soma Nagaraju, Managing Director-Cellbay
It is pride moment to the entire nation to know that India’s economy has over taken he United Kingdom’s in terms of size, making it the fifth biggest economy globally, and the third-largest by purchasing power parity (PPP).
Finance Minister also said that, the mobile manufacturing in India has increased from 5.8Cr units in 2014-15 to 31Cr Units valued in the Financial year 2022-23. The exemption of custom duties on certain components will drive mobile units’ production in the country.
Finance Minister also said that, the mobile manufacturing in India has increased from 5.8Cr units in 2014-15 to 31Cr Units valued in the Financial year 2022-23. The exemption of custom duties on certain components will drive mobile units’ production in the country.
Similar to mobile phones, the government also proposed to reduce custom duty on parts of open cells of TV panels. The charge has been reduced from 5 per cent to 2.5 per cent, so the prices of the televisions will also likely drop by a certain margin because open cell panels account for up to 70 per cent of the cost of manufacturing LED TV sets.
The most awaited 5G technology is expected to rollout at its maximum pace in the year 2023,which is certainly a great BOOSTER for all Smart Phone manufacturing companies, Industry experts says, around 45% of smartphones sold are going to be of 5G
Mr. Aashish Arora, MD CEO and founder BMT Electrinno Topology
BMT – Electrinno Topology IndustrWe welcome this Union budget 2023, It will great impact on Indian economy as well as it will give boost to manufacturing Facility in India. With a number of policies for the digital sphere on the anvil, and to bolster initiatives like that of Make-in-India semiconductors, the government has increased the budget estimate for the Ministry of Electronics and Information Technology to Rs 16,549.04 crore from the Rs 11,719.95 crore revised estimate of 2022-23. It will create the ample Job opportunities. The exemption of custom duties on various components leads to cost reduction and enhancement the manufacturing. Now we are witnessing a new India – an advanced India!
Mr. CP Khandelwal, CEO, PRI (Amazfit India Distribution)
As we approach 2023, expect to see cutting-edge technology from Amazfit, due to our exceptional R&D and hardware team. To remain competitive, the wearable industry must prioritize hardware quality, which has been neglected in Indian manufacturing. The industry can expect a focus on improved provisions for Indian SKD production and tax rebates, leading to a decline in the average order value for wearables. Moreover, there will be a strong push for uniformity, with a drive towards standardization in charging ports.
Our Analysis We also believe that #Budget2023 is quite appealing to manufacturers and as rightly pointed out will open the doors of employment in India. Continuing the import duty cuts on Camera Lens and batteries for mobile manufacturing is a welcome step and this will continue to fuel the remarkable growth India has witnessed in domestic manufacturing. Definitely a well-defined progressive budget with a growth and d
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