The Union Budget 2024 has unequivocally positioned manufacturing as a cornerstone for India’s transformation into a developed nation. Here are the comments from manufacturing icons on the budget 2024-25
Mr. A. Gururaj, Managing Director, Optiemus Electronics Ltd., says, “We welcome the initiatives announced in the Union Budget. The significant emphasis on manufacturing is heartwarming 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 workforces, 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 are particularly welcome to create a much-needed supplier base for electronics within India. These measures collectively send out a strong message to the manufacturing sector and related ecosystem in India.”
Mr. Pawan Kumar, CEO, Elista, says, “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 1.2 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.”
“The Budget 2024-25 has incentives for innovation, like providing tax benefits and grants for companies investing in R&D to encourage innovation. The budget speech announces a tax reduction on various electronic parts and raw materials used in manufacturing, which can significantly boost domestic manufacturing. The BCD on mobile phones, mobile PCBA, and mobile chargers has been reduced to 15%, as has the exemption of customs duties on critical minerals such as lithium, copper, cobalt, and rare earth elements. The removal of BCD on oxygen-free copper for manufacturing resistors and certain parts for manufacturing connectors help to lower the cost of raw materials and components, making manufacturing more economical. By reducing the cost of production, manufacturers can invest more in expanding their operations and improving their technology., “comments Mr. Amit Banka, Head of Product and Strategy, Brandworks.
Mr. Vipin Arora, Director, BMT, speaks, “We are extremely delighted with the Budget 2024, as we feel that the government has undertaken steps to create a history in manufacturing. The BUDGET proposed to reduce the basic customs duty (BCD) rates on imported mobile phones, mobile printed circuit board assemblies (PCBA), and mobile chargers to 15 percent from 20 percent. This initiative will pave the way for electronics manufacturing, and we hope to see India becoming a manufacturing hub. Additionally, the budget’s emphasis on employment in the manufacturing sector addresses a longstanding challenge, creating new opportunities and fostering a more robust workforce.”
“We find that this budget is really very good and will definitely boost the manufacturing ecosystem of India. The current BUDGET aims to boost domestic manufacturing of lithium-ion batteries; the Union government announced the complete removal of customs duty on the import of lithium minerals. It not only reduces the financial burden but also promotes local manufacturing, aligning with the Make in India initiative. India has long been an attractive consumer market for international brands, supported by our collaborative and business-friendly policies that enable seamless operations. Moreover, as announced in the Union Budget 2024, the BCD on mobile phones, mobile printed circuit board assembly (PCBA), and mobile chargers will be reduced to 15 percent. The major new exemptions and reductions primarily mean that smartphones and other electronic devices are expected to get considerably cheaper as the primary components used in the manufacturing of such units will now face a much-relaxed customs duty. It can also be expected that lithium batteries, mostly used in smartphones and tablets, will now get cheaper. However, to truly transform India into a global manuf-acturing hub, further strategies are essential. The government should focus on strengthening infrastructure, providing more incentives for research and development, and fostering skill development programs. Mobatree is committed to leveraging these opportunities to contribute to India’s vision of becoming an import-free nation in lithium-ion batteries and electronics manufacturing, driving the nation towards self-reliance and global competitiveness,’’ says Mr. Varun Aggarwal, Director, Mobatree.
Mr. Amit Goel, Founder of Innotech, says, “We are extremely delighted with the Budget 2024, and we welcome it with open arms. The finance minister Nirmala Sitharaman provided enough fuel for India’s current growth ride. The budget focused on job creation and skilling, agriculture, infrastructure, research, and technology. In addition, expanding government services such as JanSamarth, digitization of tax services, Skilling and MSME lending through TReDs platforms, and removal of Angel Tax for Startups were applauded. We are very hopeful that Budget 2024 will open new doors for SMES and startups and the component part as well. Besides this, Finance Minister Nirmala Sitharaman announced a tax reduction on some of the electronic parts and raw materials that are used for manufacturing certain components.”
“In the Union Budget 2024-25 announcement, the finance minister proposed reducing or removing customs duties on items such as gold, silver, mobile phones, and chargers. This step is bound to boost manufacturing in India. Moreover, we feel that lower prices of the raw materials would significantly reduce production costs for electronics manufacturers, potentially leading to more competitive pricing,” comments Mr. Rajesh Chopra, MD, Rise Electronics Pvt Ltd.
Mr. Kapil Wadhwa, Founder, Champion, says, “We are extremely happy for the Union Budget 2024, and we are extremely hopeful that the Budget will definitely help to boost the manufacturing ecosystem. The production-linked incentive (PLI) scheme for large-scale electronics manufacturing outlay has also increased from Rs 4,489 crore in the revised estimates to Rs 6,125 crore in FY25. BCD on some of the critical minerals used in telecommunications, high-tech electronics, etc. with a current BCD of 10%, 7.5%, 5%, 2.5% has been reduced to nil. Additionally, the tariff on graphite, silicon quartz, and silicon dioxide has been rationalized from 5.7% to 2.5%. The BCD on oxygen-free copper, used in manufacturing resistors, has been reduced from 5% to nil via 34/2024-Customs. These amendments to the customs tariff structure and the extension of exemption notifications will provide long-term stability and encourage sustained investment in advanced manufacturing capabilities. Overall, these measures will contribute to the growth and global competitiveness of India’s mobile and electronics manufacturing sector.”
Mr. Tarun Bhutani, Managing Director, AMANI, comments, “The budget’s adjustments in income tax slabs and corporate tax rates can lead to increased disposable income for consumers, potentially increase sales for Amani’s products like mobile batteries, neckbands etc. If there are specific incentives or tax breaks for MSMEs, it could directly benefit S.S. Tele Overseas Pvt. Ltd., allowing for reinvestment in technology, marketing, efforts that will reduce costs and delivery times for Amani’s products. Amani can capitalize on this trend by innovating and marketing products that enhance the 5G experience. Government support for research and development in the technology sector can encourage Amani to invest in innovative product features, keeping the brand competitive in a rapidly evolving market. Amani could explore eco-friendly product lines or packaging solutions, appealing to environmentally conscious consumers and potentially reducing costs through energy-efficient practices. Union Budget 2024 offers several pathways for growth and development for S.S. Tele Overseas Pvt. Ltd. By aligning business strategies with these governmental priorities, the company can enhance its market presence.”
Mr. Gaurav Dureja, Director, SigmaVizin Electronics Private Limited, comments, “The Union Budget 2024-25 has allocated Rs 21,936 crore to the Ministry of Electronics and Information Tech-nology (MeitY), a boost of 52 percent from the revised estimates of FY24, which stood at Rs 14,421 crore. Further, we are glad to welcome the Budget 2024 announcement to reduce BCD on mobile phones, PCBA, and chargers, while simultaneously extending exemptions on inputs and raw materials for smartphone manufacturing. I am sure that this initiative will definitely boost manufacturing and help to position India as a manufacturing hub.”
Mr. Akshay Surana, Partner, East Sun, comments, “Union Finance Minister Nirmala Sitharaman, in her Union Budget 2024-25, cuts basic custom duty on mobile phones, PCBA, and chargers to 15%, impacting smartphone pricing. We feel that the reduction in BCD on these items will have a major demand from the electronics manufacturing bodies. However, we also feel that the further reduction on taxes would have helped the manufacturers to benefit more. The PLI Scheme seems to be broadening and deepening the manufacturing ecosystem; however, we feel that certain leverages would also have fuelled growth of the manufacturing ecosystem.’’
“Budget 2024, presented by Nirmala Sitharaman, focused on presenting a detailed roadmap for our pursuit of ‘Viksit Bharat’. It emphasizes employment, upskilling workers, and supporting MSME’s and middle class. Manufacturing is one of the favourite sectors, along with infrastructure, agriculture, the space economy, service, telecom, and defense. The PLI scheme aimed at promoting domestic manufacturing, creating jobs, and reducing India’s dependence on imports. I also expect that it will attract foreign investments and help Indian companies become more globally competitive. And I see it as a positive step towards achieving the government’s goal of making India a manufacturing hub. Manufacturing is the key sector for economic growth and job creation in India. The government should focus more and more on encouraging foreign and domestic investments via various schemes and providing incentives and subsidies. Other than that, the development of infrastructure such as roads, ports, and power supply will improve logistics and reduce costs. Also, by funding and supporting R&D, focusing more on skill development and simplifying the regulations can play a key role in improving the manufacturing in India,“ says Mr. Srikant Gupta, Director, ApexTronic.
“The Union Budget 2024, the BCD on mobile phones, mobile printed circuit board assembly (PCBA), and mobile chargers will be reduced to 15 percent. The major new exemptions and reductions primarily mean that smartphones and other electronic devices are expected to get considerably cheaper as the primary components used in the manufacturing of such units will now face a much-relaxed customs duty. This, according to our opinion, will give a boost to manufacturing. Indochin welcomes Union Budget 2024 with open arms and joins the nation in building it as an electronic hub,” comments Mr. Hemant Kumar, Director – Operations, Indochin.
“The Union Budget 2024-25 has declined the BCD on mobile phones, mobile printed circuit board assembly (PCBA), and mobile chargers to 15 percent. In our opinion, this strategy will help to foster manufacturing, allowing a global stage for innovation thereby strengthening India’s position in manufacturing and turning into an export hub,’’ says Mr. Lucky Arora, Managing Director, Paramount.
Mr. Mridul Bhatia, Business Executive of Advantage Computers (India) Pvt. Ltd, comments, “We feel that the Budget 2024-25 has been quite appealing as the establishment of e-commerce export hubs in a PPP model is another significant step taken by the government and will significantly empower MSMEs to compete internationally. It will open opportunities for Indian players to boost their reach globally while enhancing the ease of doing business. India has long been an attractive consumer market for international brands, supported by our collaborative and business-friendly policies that enable seamless operations. The Budget provides 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.’’
“As per the Union Budget 2024-25, the BCD on mobile phones, mobile printed circuit board assembly (PCBA), and mobile chargers will be reduced to 15 percent. In our opinion, the new exemptions and reductions imply that imported smartphones and other imported electronic devices are expected to get considerably cheaper. This step will definitely help boost the economy, and it aims to develop an ecosystem of components. Champion Electronics looks forward to a very successful journey ahead with UNION BUDGET 2024-25 and looks forward to a strong ecosystem in manufacturing,’’ comments Mr. Parth Gupta, Director, Champion Electronics.
Conclusion
With a clear vision to harness the sector’s potential for job creation and economic growth, the government has unveiled a comprehensive package of incentives and policy reforms.
Covered By: Mobility India / Cover Story
If you have an interesting Article / Report/case study to share, please get in touch with us at editors@roymediative.com roy@roymediative.com, 9811346846/9625243429.
