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Budget to enable domestic manufacturing of high growth electronic items

Acknowledging the rapid growth of electronic manufacturing in the country, Finance Minister Nirmala Sitharaman announced that customs duty rates are being calibrated to provide a graded rate structure to facilitate domestic manufacturing of products like wearables and electronic smart meters while presenting the Union Budget 2022-23.

Nitin Kunkolienker, President, MAIT said, “Kick off of PMP for Hearables, Wearables & Smart meters is a continuation of India’s Electronics Atmanirbhar strategy. This will help in building domestic capability to address a $80 billion global market by 2025.”

“Electronics and tech get good mention and support in #Budget2022 – Customs duty rationalization to help growing mobile phones and wearables segments, announcement of govt sponsored privately managed tech fund, policy clarity on crypto including CBDC,” tweeted Rajeev Chandrasekhar, Union Minister of State for Entrepreneurship, Skill Development, Electronics & Technology.

Home-grown industry players are welcoming the government’s initiatives. Vikas Jain, Co Founder and CEO, World of Play welcomed the government’s focus on technology as it will help many tech based companies to come up with exciting product experiences for the Indian consumers. “We welcome the focus of the government on the wearables and acoustic component ecosystem and domestic manufacturing and believe in the long term, this focus will make India a formidable design and manufacturing powerhouse,” he said.

An increasing number of wearables and hearable players are manufacturing in India, and long-term policies like this will give them the desired support for local design and manufacturing in India.

In addition, duty concessions are also being given to parts of transformer of mobile phone chargers and camera lens of mobile camera module and certain other items.

“The electronics manufacturing industry is expected to see 30 per cent growth in the coming fiscal and to be worth nearly Rs 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,” Ameen Khwaja, Founder & CEO, pTron told Business Today.

Echoing the sentiment, Harsha Razdan, Partner and Head, Consumer Markets and Internet Business, KPMG in India says “The government’s impetus on PM GatiShakti plan, to build world class infrastructure and logistics with multi-modal means of transport is likely to give boost to the consumer sector supply chain. 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.”

The impetus will enable domestic manufacturing of high growth electronic items. BusinessToday

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