The Union Budget 2022-23 was presented by the Finance Minister, Nirmala Sitharaman in the Parliament today. This is the Minister’s fourth straight budget and the sixth budget session to be held since the outbreak of the pandemic in 2020.
The highlights for the consumer electronics sector are:
- “Duty concessions being given to promote electronics manufacturing, wearables and hearables devices included. Duty concessions to parts of mobile phones including camera module etc.” said Nirmala Sitharaman.
- About 85% of telecom equipment in the country is imported and basic customs duty (BCD) of 20% is levied on them. “This will enable domestic manufacturing of high growth electronic items,” she noted.
- Customs duty rates have been calibrated to provide a greater rate structure to facilitate domestic manufacturing of wearable devices, shareable devices, and electronic smart meters. Duty concessions are being given to parts of transformer of mobile phone, chargers, camera lens of mobile camera module, and certain other such items. This will enable domestic manufacturing of high growth electronic items.
Pradeep Bakshi, MD & CEO, Voltas Ltd
“Drawing inspiration from Atmanirbhar movement, Budget 2022 continues to provide the impetus for growth in the domestic market. The measures introduced by the Finance Minister in Budget 2022 will not only support domestic capacity creation but also ease the raw material supply constraints. The approval of the PLI scheme for white goods was a major milestone for the consumer durables sector in India and we are pleased to see that the Government has unleashed plans for PLIs and Phased Manufacturing for other sectors, that are bound to grow rapidly in the coming years.
At Voltas, we have been contributing towards nation building since our inception and we look forward to being a part of India’s growth story as it strives for development,”
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.”
Rajeev Sharma, Chief Strategy Officer, Mitsubishi Electric India Pvt. Ltd
“This is a growth-oriented Budget, I am sure that stepping up the capital expenditure sharply by 35.4% will have an incremental effect on the overall growth of the economy. It is good that the policy makers understand that nearly half of our population is likely to be living in urban areas by 2047, when India is at 100.
The announcement for urban capacity building like mass transit, planning help, etc. would act as a good principle for development of the country. The budget has demonstrated a good balance between today’s needs and the future’s demand,”
Vijay Kumar Mikkilineni, Head of Marketing, 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 ($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.”
Satish NS, President, Haier Appliances India
We welcome the measures announced by Hon’ble Finance Minister in Union Budget 2022-23. The proposed recommendations promise to provide the much-needed economic velocity to India’s growth cycle and the government’s commitment to making India ‘AtmaNirbhar’. The production linked incentive (PLI) will further potentially help in increasing penetration and expansion of the tech & durables market. We remain committed to bolstering our domestic manufacturing in order to grow the Indian appliance market, which would further result in building economies of scale, generating employment opportunities, increasing export competitiveness, and making India a key manufacturing hub.