The Budget 2022 has been awaited and the government has projected GDP growth at 8 per cent to 8.5% compared with an estimated 9.2 percent for the current fiscal year and a 6.6 per cent contraction the previous year. With a focus on four pillars of development — inclusive development, productivity enhancement, energy transition and climate action — the Budget gives a blueprint of economy from India at 75 to India at 100, as per the finance minister.
India will allocate an additional Rs 19,500 crore to boost investment in solar equipment manufacturing, Finance Minister Nirmala Sitharaman
Here are some comments of the industry leaders.
Mr. Avneet Singh Marwah, CEO, Super Plastronics Pvt Ltd, Kodak brand licensee “While I’m very happy about the big announcements on 5G technology, which I’m sure will go a long way to improve Internet connectivity which will, in turn, help the Smart TV industry grow, I was expecting more for the consumer electronics industry. We were expecting GST reduction on televisions from 28% to 18% on 81cm and above or PLI schemes. We also welcome the move to provide 80 lakhs affordable homes this year, which will definitely expand the consumer electronics market, but to give the current market sentiments a fillip and improve consumer confidence, more needs to be done for healthcare, education, manufacturing.”
Mr. A Gururaj, MD, Optiemus Electronics Ltd “The industry has been completely galvanized under the pioneering initiative of PLI scheme, with Hon’ble FM today stating that it has potential to create 60 Lakh new jobs and additional production of 30 lakh crores. This is also a clarion call to the industry to work much harder in the years to come to make it a reality. On a macro level, the scheme around design-led manufacturing as part of the PLI scheme would fasten the development of the ecosystem, and also changes in customs duty will drive greater domestic value addition in Electronics manufacturing in the country, which has grown rapidly in the last few years.”
Mr. 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 domestics to provide unique options to the masses. Similarly, an extension of the concessional tax regime by 1 year is a welcome move during the pandemic which is not showing any sign of deterrence.”
Mr. 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 start-ups and the fact that start-ups are being considered the drivers of the Indian economy’s growth.”
Mr. Achin Gupta, Country Head-India at 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.”
Mr. Arnav Mutneja- Director at Quantum Hi-Tech “(Quantum Hi-Tech is one of the pioneering lifestyle and consumer technology brands in the country). 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.”
Mr. Arjun Bajaaj, Director, Videotex International Group “The GatiShakti Masterplan is a great step by the government to improve the logistics infra of the country which was much needed, and we hope it can be accomplished at the earliest. The overall budget does not have a direct impact on the TV Industry. We were expecting a cut in the GST slab for TV sizes above 32”. There should have been some relief in the Income Tax Slab but the same has not been touched which is another disappointment. The Digital University Initiative is another great initiative for education taken by the government. The overall budget seems to be positive to strengthen the Indian Economy.”
Mr. Ashok Rajpal, CEO & Founder, Ambrane India “We welcome the budget positively as it is aimed at furthering the Indian manufacturing industry. Additionally, the increase in PLI benefits to the sector is also beneficial to the companies directly, as well as indirectly. The 15 percent income tax for new manufacturing companies poses immense relaxations for the companies following the attrition of Make in India.”
Mr. Paresh Vij, Founder & Director of U&i “The Budget 2022 aims to boost the economy and will definitely augment innovation in India through a series of host of measures. The budget is likely to give an impetus to the Indian wearable segment and aspire the upcoming brands to constantly innovate.”
Mr. Gaurav Dureja, Founder VIZIN INDIA “This year the Budget 2022, the duty concessions have been given to parts of transformer of mobile phone chargers and camera lens of mobile phones to enable domestic manufacturing of high growth electronic items. Hence, I feel that this time the budget will enable to boost the manufacturing segment and it will help the manufacturers.”
Ms. Rimo Bose, PR and Branding Manager, TCL India “Extending the support to the government for increasing focus on the consumer electronics sector and formation technology, which will undoubtedly benefit all global brands like us. The recent Allocation of Rs 197 million (US $ 26 billion) to PLI projects in the United Budget (202122), especially electronic components, is one of the 13 key sectors that will definitely help our economy grow.
In addition, tariff reductions will drive the production of electronic devices, which will be the greatest benefit of the electronic device sector.”
Mr. Vikas Jain, Co-Founder and CEO, World of Play “We support the government’s focus on technology, it will help many tech based companies like WORLD OF PLAY to come up with exciting product experience for the Indian consumers. We welcome the focus of government on the wearables and acoustic component ecosystem and domestic manufacturing and believe on a long term, this focus will make India as a formidable design and manufacturing powerhouse. Additionally the boost in ease of doing business and special impetus on creating 60 lakh new jobs will give a desired push to the goal of becoming Atma Nirbhar Bharat. As a brand, we promote and follow Make in India and we believe long-term policies like this will give us the desired support for the local design and also manufacturing in India.”
Mr. David Li, CEO, Huawei India, “The 2022-23 Budget is one that has its eye set firmly on the future, with technology-driven sustainable development at the core of its vision. The budget provides for digital enablement for all sectors from digital education, digital university, telehealth, and digital banking, among others. It also looks at boosting the economy with provisions for the start-up ecosystem, infra, clean energy. The focus on skilling, digital learning and clean mobility will create opportunities for Indian youth and will also go a great way in addressing the skill gap in various industries leading for an inclusive development.”
Mr. Mandeep Arora, MD, UBON, “The Union Budget has tweaked duty on electronics and phone parts in the Union Budget 2022. Revision of customs duties on components or sub-parts of consumer electronics items is a seemingly encouraging step to promote local manufacturing and increase local sourcing of components. This may lead to reduction in cost prices of Mobile phones and chargers. Another noteworthy point was on how using smartphones to carry on transactions will bring in more transparency in the system.”
Mr. Manish Sharma, CEO, Panasonic India, “Union Budget 2022 continues to pave the way for a sustainable economic growth in Amrit Kaal, backed by consistent structured approach. It underscores the Govt commitment towards Digital India and investment in Public Private Partnership through game changing initiatives like Gati Shakti programme, investment in the sunrise sectors and MSMEs, introducing policies for clean energy, among others. Infact, the seven engines defined under Gati Shakti initiative is bound to have a multiplier effect as it will help aid in reduction of logistics costs, enable supply-chain efficiencies, create employment generation all this, while using technology. It was encouraging to see the focus on clean energy. In line with Panasonic’s business strategy, we are looking forward to details on the Battery Swapping Policy and participate in India’s Electric Vehicle (EV) story. Also, the commitment on building a circular economy is the need of the hour as the world looks at sustainable solutions in a phased manner.”
Mr. Akhilesh Chopra – Sales Director, 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.”
Mr. 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 #Aatmanirbhar Bharat ka budget 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
Mr. Lalit Arora, Co-Founder – Consumer Tech Industry, VingaJoy, “We welcome the UNION Budget 2022. Concessions in customs duty will be given to promote electronics manufacturing, wearables and hearables devices including concessions on parts of mobile phones including camera modules etc. This will be an encouraging step for companies operating in consumer durables manufacturing. Since mobile phones constitute a major chunk of the country’s electronics exports, the step by the Government is a positive move. The initiative to boost startups and make the market value and position of existing players more promising is well received.”
Mr. Vijay Kumar Mikkilineni, Head of Marketing & Top Management Team at TCL India “We welcome the Finance Minister’s increased focus on the consumer electronics industry and formation technology, which will definitely benefit all worldwide companies, including ours. The 2022 Union Budget allocated 1.97 lakh crore ($26 billion) for PLI projects, notably electronic components, which are among the 13 vital sectors that would undoubtedly help our economy expand. Furthermore, reduced customs taxes will encourage electronics manufacture, which will benefit the electronics industry.”
Mr. Aditya Padman, Co-Founder, ServeXplus & Rektify “ The budget 2022-23 is an Atma Nirbhar Budget and when the battery swapping policy introduced with interoperability standards, will cause EV makers to manufacture EVs with standardized batteries while reducing the TCO of EV ownership by negating the need to purchase a new battery which is currently the most expensive component of a EVs. This budget is set to drive Infrastructure, Investment and Digitalization. Interesting times ahead for India as with a With a $3.6 Trillion Market Capitalisation, India now World’s 5th Biggest Market ahead of UK, France, Canada, Germany and Saudi Arabia. Definitely this budget will take India towards self-reliance.”.
Mr. Snehashish Bhattacharjee, Global CEO and Co-Founder, Denave, “The Union Budget 2022 provides an impetus for growth of the economy while simultaneously laying down a blueprint for the next 25 years of the country. The finance minister presented a forward-looking budget that focuses on a long-term plan for the country with digitization, urban development, and sustainability at its core. Overall digitization as a theme will be the backbone for new investments in sectors such as education, healthcare, banking, agriculture, and will help these sectors to be more efficient and competitive. Ease of doing business is high on government’s priority, with plans of launching ‘Ease of Doing Business 2.0’. Besides this, the government has also announced INR 6000 crore program to support MSMEs over the next five years. The increased focus on employability and e-skilling will help the MSME sector and revive industrial activity. The budget has largely focused on a slew of tangible reforms whilst increasing investments in infrastructure, MSME and startup development coupled with impetus given to certain sunrise sectors such as logistics, digital banking & finance and technology (with 5G rollout) reiterate India’s ambition for all-inclusive, sustainable and futuristic USD5 trillion economy. While detailed implementation of all these schemes is yet to be seen, these changes would go long way in not only in boosting Indian economy but will also making the country a globally competitive market.”
Mr. Vipin Agarwal, Co-Founder, Candes, “While there was no change in the current tax structure, it was still heartening to note some relief offered for custom duty. Growing urbanization and the quest for better lifestyles and convenience are driving interest in smart home appliances while also increasing disposable income levels. The Union Budget 2022’s focus on Atma Nirbhar Bharat will definitely have a huge impact on the growth potential of the consumer durables category especially in emerging segments such as smart washing machines, dishwashers, and more.”
Mr. Aashish Kumbhat, Founder and Director, Inbase, “Budget is looking very promising with major focus on ‘Organically Boosting the Indian economy’ and developing the domestic ecosystems. Kickstarting 5G Auction, Battery Swapping for E vehicles, 68% defense procurements from domestic market, Boosting Solar Manufacturing, Introducing new faster Cargo trains, Above all Indian Digital Rupee and others for sure are great initiatives to make Indian economy grow stronger organically.”
Mr. Akshay Munjal, Founder & CEO, Hero Vired, “We welcome the government’s thrust towards upskilling the youth and digitization in the Union Budget FY 23 announced today. New initiatives such as digital DESH e-portal for skilling, the expansion of PM’s eVIDYA scheme, and a digital university are not only innovative but also an encouraging boost to the education sector; and will provide students with equal opportunities across rural and urban regions. While we were hoping for the rationalization of 18% GST in online education services and some tax rebate online learning programs, we are excited to see the government adopt a collaborative strategy that allows world-class universities to offer courses in financial services and technology free of Indian regulations in the GIFT city. Moreover, it is heartening to see that the Budget also included steps for the empowerment of teachers, enabling them to facilitate better learning outcomes. Finally, we are thrilled about the animation, visual effects, gaming, and comics (AVGC) Taskforce, as it has the potential to create immense employment opportunities for the youth.”
In nutshell
2022 Union Budget is referred as “people-friendly” and progressive as it brings with it new energy and strength to India’s development trajectory, especially at a time when the country is fighting the pandemic. Moreover, the removal of exemption on items which are or can bemanufactured in India and providing concessional duties on raw materialthat go into manufacturing of intermediate products will go many a stepforward in achieving our objective of ‘Make in India’ and ‘AtmanirbharBharat’.
Thus we feel that this Budget 2022 will boost the economy.
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