The long-awaited Union Budget 2024-25 is Finally Out. Below are the comments of some of the tech and electronics sectors’ leaders:
Mr. Avneet Singh Marwah, CEO, Super Plastronics Pvt Ltd, a Kodak brand Licensee
“I commend the forward-looking measures introduced in Union Budget 2024, especially the revised tax structure and increased standard deduction, aimed at boosting consumer spending and nurturing economic growth. The allocation of an additional 3 crore houses under PM Awas Yojana will provide a significant boost to the market for large consumer durables. The proactive efforts of the government to enhance ease of doing business in the manufacturing sector are evident and commendable. The introduction of new employment incentives across manufacturing and other sectors will not only spur workforce expansion but also bolster the Make in India initiative, complementing existing PLI schemes. However, there was an expectation within the industry for more aggressive measures aimed at increasing disposable income to further stimulate consumer spending.”
Mr. Amit Khatri, Co-Founder, Noise
“The Union Budget 2024 presented by Finance Minister Nirmala Sitharaman is a visionary step towards inclusive growth, with a strong emphasis on manufacturing, upskilling, and women empowerment. Youth and participation of women in the workforce hold the key to India’s success. To this end, the focus on extensive training and skill development initiatives demonstrates a clear commitment to boosting employability and productivity. By linking job creation in manufacturing to first-time workers and offering EPFO incentives, the government is paving the way for a robust manufacturing ecosystem, creating 4 crore jobs over the next five years. It is certainly a commendable initiative to boost local manufacturing. Additionally, offering internship opportunities in the top 500 companies to 1 crore youth is a strategic move that will equip our young population with the skills and experience necessary to thrive in a competitive global economy.
The establishment of e-commerce export hubs in a PPP model is another significant step taken by the government and will significantly empower MSMEs and traditional artisans to compete internationally. It will open opportunities for Indian players to boost their reach globally while enhancing the ease of doing business and accessing new markets. India has long been an attractive consumer market for international brands, supported by our collaborative and business-friendly policies that enable seamless operations. The export hubs are an efficient step in unlocking similar avenues for homegrown companies, allowing a global stage for their innovation and entrepreneurial mindset, and strengthening India’s position in manufacturing.
Lastly, I feel the abolition of the angel tax will undoubtedly boost funding in the startup ecosystem, fueling innovation and growth. This move, along with incentives for job creation in the manufacturing sector and support for MSMEs, will not only stimulate valuable employment opportunities for millions of young people but also ensure economic resilience, laying a strong foundation for a powerful growth trajectory for India. Driven by the vision of Viksit Bharat, we look forward to actively participating in the nation’s journey towards global prominence and innovation leadership.”
Mr. Lalit Arora,Co-founder, UBON
We welcome the Government’s bold steps in Budget 2024 aimed at bolstering MSMEs and the manufacturing sector. The decision to increase Mudra loan limits to ₹20 lakh for previous borrowers is a significant stride towards fostering entrepreneurial growth and economic resilience. This move, along with credit guarantee schemes, term loans for machinery purchases, and a technology support package for MSMEs, underscores their commitment to catalyzing industry expansion and modernization.
However, while these initiatives are commendable, we believe there’s a missed opportunity in not addressing the urgent need for reducing bureaucratic hurdles and providing more direct financial incentives for sustainable and eco-friendly technologies. Moreover, integrating advanced technology systems for the Insolvency and Bankruptcy Code (IBC) and SIDBI’s plan to open 24 new branches for MSME clusters are crucial steps towards enhancing operational efficiency and financial inclusivity.
Additionally, the provision of financial support for higher education loans up to ₹10 lakhs in domestic institutions reflects the Government’s commitment to nurturing skilled manpower, essential for driving innovation and competitiveness in the global market. The announcement to reduce BCD on mobile chargers by 15% is particularly encouraging and will spur domestic manufacturing, benefiting both consumers and manufacturers.
Looking ahead, we urge for continued focus on policies that streamline regulatory processes and incentivize R&D investments, pivotal for positioning India as a global leader in manufacturing and technology. Together, these efforts will ensure a robust MSME ecosystem and propel the manufacturing sector towards sustainable growth and global competitiveness.
Mr. Mandeep Arora, Co-founder, Vingajoy
The Government’s decisive moves in Budget 2024 to empower MSMEs and the manufacturing sector. Increasing Mudra loan limits to ₹20 lakh for past borrowers marks a bold stride towards fostering entrepreneurial dynamism and economic resilience. These measures, coupled with credit guarantee schemes, machinery purchase loans, and a technology support package for MSMEs, underscore a strong commitment to catalyzing industry expansion and modernization.
The provision of financial aid for higher education loans up to ₹10 lakhs at domestic institutions demonstrates the Government’s dedication to nurturing skilled talent crucial for driving innovation and global competitiveness. Additionally, the decision to cut BCD on mobile chargers by 15% is particularly promising, poised to stimulate domestic manufacturing and benefit consumers and producers alike. While these initiatives deserve praise, there remains an opportunity to address urgent needs such as reducing bureaucratic red tape and enhancing direct financial incentives for sustainable technologies. Integrating advanced technology into the Insolvency and Bankruptcy Code (IBC) and expanding SIDBI’s footprint with 24 new branches for MSME clusters are crucial for boosting operational efficiency and financial inclusivity.
Looking forward, sustained efforts are needed to streamline regulatory frameworks and incentivize R&D investments to solidify India’s position as a global manufacturing and technology leader. These actions will fortify the MSME ecosystem and propel the manufacturing sector towards sustainable growth and heightened global competitiveness.
We commend the government’s proactive measures in the Union Budget 2024, particularly the introduction of the credit guarantee schemes for MSMEs in manufacturing. 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 ₹100 crore will undoubtedly bolster the manufacturing industry, fostering growth and innovation.
These measures will greatly benefit the consumer electronics sector by enabling manufacturers to invest in advanced machinery and implement the latest technology, thereby enhancing production capabilities and product quality. The decision will help reduce production costs, making high-quality consumer electronics more affordable and accessible to the Indian market. Elista is poised to leverage these opportunities to drive growth and meet the evolving demands of consumers.
The government’s focus on youth development, with five dedicated schemes and a central outlay of ₹2 lakh crore over the next five years, is also highly praiseworthy. Investing in the skills and potential of 4.1 crore youth will drive our nation’s future economic growth and stability. We look forward to leveraging these initiatives to further enhance our operations, contribute to the local economy, and support the broader national objectives.”
Mr. Kannav Thukral, Managing Director, BlackZone Mobiles
“Finance Minister Nirmala Sitharaman’s budget is a game changer for the mobile industry and the MSME segment under the ‘Made in India’ initiative. The reduction of Basic Customs Duty (BCD) on mobile phones and chargers to 15% is a significant step that will lower production costs, making Indian-made mobile devices more competitive. This move will enable the industry to reach a broader audience, and the reduced taxes will lead to higher profits and increased production. Additionally, the enhanced credit guarantee scheme and the facilitation of term loans for machinery purchases are set to invigorate the manufacturing sector. The tailored package for technology support and the new bank credit mechanism will significantly enhance digital capabilities and financial stability for new businesses and investments. By unlocking working capital and expanding the Mudra loan to 20 lakh, the government is empowering manufacturers to scale up operations without the burden of collateral. These measures will not only drive growth but also reinforce India’s position as a global manufacturing hub for mobile devices.”
Mr. Ravi Agarwal, MD and Founder of Cellecor Gadgets Limited
“India is on the cusp of becoming a world leader in the mobile phone industry, excelling not just in consumption but also in innovation and production. Reducing Basic Customs Duty (BCD) on mobile phones, mobile PCBA, and chargers to 15% marks a new era for our industry. This balanced approach fosters growth, ensures affordability, and will have a multifaceted impact, promoting India as a global leader in mobile phone production and consumption. This initiative aligns with the vision of a ‘Vikshit Bharat,’ emphasizing self-reliance and robust domestic production. By making manufacturing more cost-effective, we are not only driving economic growth but also empowering our workforce and setting the stage for India to lead globally in the mobile phone industry.
Moreover, the reduction of the TDS rate for e-commerce from 1% to 0.1% will enhance cash flow and streamline operations, supporting the sector’s growth. With India’s e-commerce market expected to hit $120 billion by 2026, and mobile commerce driving 70% of this growth, these changes are timely. The introduction of e-commerce export hubs will strengthen India’s global trade position, offering infrastructure to boost exports.
At Cellecor Gadgets Limited, we are excited to leverage the recent budget initiatives to expand our reach, optimize operations, and enhance our technology. These measures not only reflect the government’s commitment to advancing a dynamic digital economy but also align with our goals of growing our product portfolio and delivering superior value. We look forward to supporting the government’s efforts in elevating the mobile phone industry and witnessing its transformative impact on the economy.
Over the past six years, the Indian mobile phone industry has achieved remarkable milestones, including a three-fold increase in domestic production and a nearly 100-fold jump in exports. This growth underscores the sector’s maturity and crucial role in India’s economy. By reducing the BCD, the government addresses high import duties, paving the way for enhanced competitiveness and innovation. This will lower production costs, enabling manufacturers to offer more affordable, feature-rich devices, which is vital in a market like India, where affordability drives consumer adoption. With over 750 million smartphone users and a projected market volume of $77.27 billion by 2027, the growth potential is immense.
The mobile phone industry has long faced challenges from high taxes and duties, hindering growth. The current reduction in BCD should mitigate these issues, allowing companies to invest more in R&D and bring cutting-edge technology to India. This reduction will also stimulate domestic manufacturing, creating job opportunities and skill development. Additionally, it will attract global companies to establish manufacturing units in India, reinforcing the country’s position as a global manufacturing hub.”
Mr. Rajesh Doshi, Co-Founder & Director at Zebronics
“The Union Budget 2024-25, announced by Finance Minister Nirmala Sitharaman, presents a robust vision for various sectors’ enhancement. The new tax regime reforms benefit law-abiding taxpayers. Job creation schemes are proposed across segments, particularly manufacturing, to drive “Vikasit Bharat.” Support for MSMEs and manufacturing includes long-term loans for machinery, credit guarantees, and establishing electronic manufacturing clusters, enhancing global competitiveness. Skill development initiatives introduce new courses, revise loans, and develop National Industrial Corridors to connect top companies with CSR funds, aiming to benefit over 1 crore youth in the next five years. The reduction of Basic Customs Duty on mobiles and accessories and PCDA is a strategic move to support these industries. Overall, steps to ease trade, reform manufacturing, and support the start-up ecosystem are vital. Reforms in solar, energy, agriculture, and education are crucial for holistic national development. Notably, the commitment to enhance the inclusion of more women in the workforce by formulation of skill development programs and encouragement of more women entrepreneurs reflects the virtue of them being amongst the decision makers in the future.”
Mr. Thiruppathi Subramaniam, Director ISC, Zebra Technologies
“In the era of next-generation technologies such as AI, ML, robotics, and automation, the initiatives announced in the Union Budget 2024-25 are pivotal for preparing India’s talent pool to drive our economy towards the USD 5 trillion goal. With an allocation of ₹2 lakh crore for employment-linked skilling, incentives for creating 4 crore jobs in the manufacturing sector, and the introduction of the Model Skill Loan Scheme, our youth will have unprecedented opportunities for growth. Additionally, the provision of internships and direct benefit transfers will ensure our workforce is skilled and financially supported. These comprehensive measures will build a robust, future-ready talent pool capable of spearheading India’s technological and economic advancement.”
Mr. Su Piow Ko, CEO of AET Displays
“The Union Budget 2024-25 provides significant support to the manufacturing sector, particularly through its focus on MSME clusters. The introduction of easy financing and credit guarantee schemes, along with the facilitation of collateral-free term loans for the purchase of machinery and equipment, will greatly enhance the manufacturers and suppliers network. These measures act as catalysts for the entire supply chain, driving growth and innovation. Additionally, the budget’s emphasis on employment in the manufacturing sector addresses a longstanding challenge, creating new opportunities and fostering a more robust workforce. For manufacturers like us, this budget is truly a blessing, offering the much-needed support to propel our industry forward.”
Mr. Kishan Jain, Director, Goldmedal Electricals
“We extend our sincere gratitude to the Honourable Finance Minister for presenting the forward-looking Budget 2024. The focus on bolstering manufacturing practices through targeted incentives and policy reforms represents a significant step towards fostering growth and innovation within the consumer electronics sector.
This budget not only addresses the prevailing industry challenges but also lays a solid foundation for a more prosperous and sustainable future in manufacturing. With the government’s strategic vision and commitment to fostering a conducive environment for business development, we are optimistic about the promising opportunities this budget will offer to both the sector and the broader economy. We look forward to contributing to and benefiting from this transformative journey.”
Mr. Piyush Jalan, Co-founder and COO of G0VO
“We sincerely appreciate the government for introducing measures that greatly bolster the electronics manufacturing sector. The reduction in import duties on key components will enhance our ability to produce high-quality audio devices more cost-effectively, empowering us to provide more affordable options for consumers.
The government’s commitment to supporting MSMEs and the manufacturing sector is remarkable. The new credit guarantee scheme for machinery purchases, increased Mudra loan limits, and the introduction of e-commerce export hubs will empower companies like ours to expand operations and compete on a global scale. These initiatives reflect a clear vision for fostering innovation and strengthening India’s position in the electronics sector.
Moreover, we are enthusiastic about the emphasis on skill development and job creation within manufacturing. The centrally sponsored scheme to skill 20 lakh youth and the incentives for hiring first-time workers will contribute to building a robust and skilled workforce. This comprehensive approach is poised to drive growth and technological advancement in our industry, steering us towards a more competitive future.”
Mr. Prassann Daphal, CEO, Recyclekaro
“The government’s announcement of a 25% waiver on customs duty for nearly 25 critical minerals is poised to drive demand across various renewable sectors, including energy storage solutions, electric vehicles (EVs), high-tech electronics, defense, and space. This initiative will bolster the refining and processing of these minerals, strengthening a resilient supply chain ecosystem.
Additionally, the establishment of a ‘Critical Mineral Mission’ aims to oversee domestic production, recycling, and international acquisition of critical mineral assets. The mission will prioritize technology development, skilled labor, and an expanded producer responsibility framework, including Extended Producer Responsibility (EPR), which will benefit the e-waste and battery recycling sectors.
This well-planned budget reflects a strong commitment to supporting the critical minerals sector, which is crucial for advancing greener transformations.”
Mr. Raman Bhatia, Founder & MD, Servotech Power Systems Ltd.
“The Union Budget 2024 was built on the foundation of Viksit Bharat. A strong focus was put on solar energy. The remarkable achievement of PM Surya Ghar Muft Bijli Yojana with 1.28 crore registrations and 14 lakh applications reflected the growing public awareness and alignment with the government’s vision of a solar-powered India. As a leading solar panel manufacturer, this motivates us to make solar energy more adoptable, affordable, and accessible nationwide. The exemption of customs duty on lithium, a crucial mineral used in the renewable energy sector, will reduce costs, making lithium-based technologies more affordable. The pumped storage policy which includes pumped storage projects for electricity storage will facilitate the smooth integration of the growing share of renewable energy into the overall energy mix, paving the way for a sustainable energy future. Imposing customs duty on the import of solar glass for solar cell and module production will promote domestic manufacturing and boost the economy. The increase of BCD on non-biodegradable PVC flex banners from 10% to 25% is a commendable step towards environmental conservation. Power projects including setting up of a new 2400 MW power plant at Pirpainti, Bihar will add Bihar in the category of solar powered states, overall enhance the power quotient, add to the existing power capacity and create jobs. Overall, the budget highlighted the remarkable changes that will contribute to the development of a nation we all envisioned.”
Mr. Sanchit Sekhwal Goyal, Director, Su-Kam Power Systems Limited
“SuKam welcomes the Ministry of Finance’s decision to fully exempt the custom duty on critical minerals which will reduce the price of lithium-ion batteries and consequently making electric vehicles more affordable. The Finance Minister’s emphasis on expanding the electric vehicles ecosystem through increased usage in public transport network, is a forward-looking move. By championing these initiatives, the government reaffirms its commitment to climate control. EVs contribute significantly to reducing greenhouse gas emissions, and their widespread adoption aligns with global efforts to combat climate change. It’s heartening to see this focus on both affordability and environmental responsibility.”
Mr. Muralikrishnan B, President at Xiaomi India
“We welcome the Budget 2024 announcement to reduce BCD on mobile phones, PCBA and chargers, while simultaneously extending exemptions on inputs/raw materials for smartphone manufacturing, capital goods, and inputs for capital goods in the electronics industry.
At Xiaomi India, we have been manufacturing nearly 100% of our smartphones locally with a strong emphasis on sourcing components like PCBA, charging cables, camera modules, and mechanics, among others. Today’s announcement will help further strengthen the domestic electronics manufacturing ecosystem.
The proposal for a comprehensive review of the tariff rate structure is another positive step that will further strengthen the industry.
We appreciate the government’s emphasis on increasing women’s participation in the workforce and the employment-linked incentives for first-time employees. With these progressive steps, we anticipate a surge in consumer spending, including increased demand for smartphones.”
“The budget will steer India towards a Viksit Bharat by 2047 through a slew of measures that boost consumption. Tax reduction of up to 15% on mobile phones, mobile PCBs, and chargers is expected to boost domestic manufacturing and benefit customers. The budget focus on employment, skilling and middle class will spur consumer spending, which, in turn, would stimulate economic growth. The fiscal prudence of 4.9% and increased outlay of capex will put more money in the hands of people and general consumer sentiment will increase. The budget will further charge the economy of Bharat.”
Mr. Arijeet Talapatra, CEO, Transsion India
“Transsion India welcomes the Ministry of Finance’s decision to reduce the basic customs duty from 20% to 15% on mobile phones, mobile PCBA, and chargers. This policy change will significantly benefit both manufacturers and consumers, fostering a more competitive smartphone market and strengthen our position in the global market. This move will undoubtedly bolster the industry’s growth making smartphones more affordable and we remain committed to the ‘Make-in-India’ initiative to bring the best-in-class smartphones to the ever-evolving Indian market.”
Mr. A. Gururaj, Managing Director, Optiemus Electronics Ltd.
“We welcome the initiatives announced in the Union Budget. The significant emphasis on manufacturing is heart warming and much needed for the growth of the economy. With the substantial expansion of the electronics manufacturing industry, the demand for a skilled workforce has become paramount. The announcement of various skilling initiatives and the scheme to incentivize additional employment in the manufacturing sector, particularly for first-time employees, will provide essential support to industries reliant on skilled workforce, especially in electronics. Furthermore, the proposal to reduce the Basic Customs Duty on mobile phones, mobile PCBA, and mobile chargers to 15% is a positive step. The measures laid out to support the MSME industries in particularly welcome to create a much needed supplier base for electronics within India. These measures collectively send out a strong message on the manufacturing sector and related eco system in India.”
Mr. Roby John, CEO and Co-Founder of SuperGaming
“Today’s Union Budget, presented by Finance Minister Nirmala Sitharaman, offers multiple benefits to the country’s video gaming ecosystem. The reduction in basic custom duty on mobile phones is a move that will make smartphones more affordable, which is excellent news for India’s extensive mobile gaming community. For our upcoming game, Indus, and other games in the market, this means reaching a broader audience and accelerating growth in the mobile gaming sector.
Additionally, the removal of the Angel tax is a major boost for the entire startup ecosystem. This will give relief to more gaming and esports entrepreneurs who want to bring their innovative ideas to life, thereby strengthening the gaming and esports ecosystem in India. Overall, we are confident that these measures will propel India’s tech and video gaming industry, bringing India’s gaming culture forward.”
Mr. Ravi Kunwar, Vice President – India & APAC, HMD Global (The Home of Nokia Phones)
“As we anticipate the Interim Union Budget 2024, HMD Global holds optimistic expectations for the Indian smartphone market. Foreseeing an extension or enhancement to the Production Linked Incentive (PLI) policy, we aim to fortify local production and encourage an indigenous components supply chain. The budget’s positive impact on operations, particularly in local manufacturing, is anticipated, though precise planning hinges on final announcements. Our wish-list emphasizes more incentives for local production, encouragement for components manufacturing within India, and support for exports. In the face of potential changes, we stand ready to make necessary adjustments, anticipating a budget that builds upon existing policies for stability and growth. HMD Global remains committed to contributing to India’s self-reliance and the global success of its smartphone industry.”
Mr Akhilesh Chopra Director, Bluei
With the government’s proposal of incentives amounting to ₹40,000-45,000 crore, either through direct financial incentives or the Production Linked Incentive (PLI) scheme, we foresee a significant shift in the industry dynamics. These incentives are poised to catalyse domestic manufacturing, making India an even more attractive destination for global players in the mobile and electronics sectors. At Bluei, we view this budget as a pivotal step towards bolstering India’s position as a global manufacturing hub. The incentives will not only enhance competitiveness but also spur innovation and investment in advanced technologies. This initiative is expected to result in increased job opportunities, technological advancements, and a stronger supply chain ecosystem within the country. To further improve manufacturing in India, we believe the government should focus on simplifying regulatory frameworks and providing robust infrastructure support. Additionally, promoting skill development programs tailored to the electronics industry and enhancing ease of doing business will play a crucial role in attracting foreign direct investments (FDI). A concerted effort towards sustainable practices and environmental compliance will also ensure long-term growth and resilience in the sector. Overall, the Budget 2024 is a testament to India’s commitment to becoming a global leader in electronics manufacturing, and we are excited to be part of this transformative journey.
Mr. Varun Gupta, Co-Founder of Boult
We’re thrilled about the Finance Minister’s recent announcement to simplify FDI rules and make things easier for investors. This is a big win for the Indian startup scene and will definitely bring in more investment, drive innovation, and boost growth.
The removal of the angel tax is great news for early-stage startups and shows the government’s support for startup funding. The focus on creating jobs, developing skills, supporting MSMEs, and boosting manufacturing is setting the stage for a better India.
The new Credit Guarantee Scheme for MSMEs, along with the push for skill development and easier FDI regulations, is a solid approach to promoting growth and making us more competitive globally. Plus, the government’s focus on upskilling the youth and embracing advanced manufacturing and digital tech is giving us a competitive edge.
And the drop in customs duty on PCBs for mobile phones is a game-changer for the electronics industry. Lowering the duty from 20% to 15% will make electronics more competitive and boost growth for the wearables market.
Mr. Kashish Lalit, Director & Founder, Toreto
We welcome the bold steps taken by the government especially Finance Minister which is specifically aimed at bolstering MSMEs and the manufacturing sector. The decision to increase Mudra loan limits to ₹20 lakh for previous borrowers is a significant stride towards fostering entrepreneurial growth and economic resilience. Consumer electronic manufacturing will get a leg up and get more investment with the government extending the custom duty exemption or concession in the Budget on several key components used in manufacturing of televisions, microwave ovens, LED lights, CCTV cameras, washing machines and fans till March 2026.
This step is a very bold step undertaken by the government to boost electronic manufacturing and gives India a push to innovate and be the export hub.
Conclusion
The new budget slashes the BCD by up to 15 percent, aiming to make smartphones more affordable and bolster local manufacturing. This strategy is a move to stimulate India’s electronics sector.
Covered By: Mobility India / Union Budget
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