MAIT | Post Budget Statement

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MAIT congratulates the Hon’ble Finance Minister for presenting a progressive investment-oriented budget.

MAIT congratulates the Hon’ble Finance Minister for the third successive year of emphasis on technology-led growth. This Digital transformation is silently and surely taking India to another orbit of economic efficiency.

Key takeaways for the Electronic Industry- 

  1. Use of Technology and Digitization will lead to demand for Electronic Products and Technology Solutions.
  2. Emphasis on Ease of Doing Business and Agile Policymaking – with a trust-based policy approach. A key enabler for the Fast-moving Electronics Hardware industry.
  3. Kick-off of PMP for Hearables, Wearables & Smart meters a continuation of India’s Electronics Atamnirbhar strategy. Building domestic capability to address an 80Bn dollar Global market by 2025.
  4. This budget focuses on bringing in Capex investment to Indian Industry.

The focus of the Government on support for R&D by bringing in public funding for R&D over and above the current academic and academia-industry framework is very encouraging. Along with the allocation of 5% of USO Fund for R&D in products to take broadband into rural India. 

The allocation of funding for education content, 200 TV channels for education in the regional language under PM e-Vidya,  the transliteration of land records in 8 regional languages all have a powerful catalyst to ward integrating vernacular India into the Digital India.

Agile Policy steps of extension of start date for manufacturing for “Concessional tax regime”, the incorporation date for Start-ups for availing Tax incentives is welcome step and it demonstrates GoI walking the talk on Agile Policy Initiatives. 

Last but not the least, the GoI’s emphasis on improving multi-modal connectivity and strengthening India’s logistics is a very positive step for increasing India’s competitiveness and sustained electronic manufacturing out of India. We the Industry look forward for two Trans-shipment Hubs out of India and exclusive Air Cargo Airports to support electronic manufacturing.

India has led the world in FinTech. Today’s announcement of India Digital Currency is another pioneering step by India in this direction.

Fiscal steps towards supporting India’s recovery.

Topping up existing Opex led outlays with Capex driven strategy is a welcome step.

For the SME Sector the extension of ECLGS scheme to Mar23 is very welcome. Many SME’s survived on account of this scheme during the difficult covid period.

SME’s are big suppliers to Public procurement. End to End Digitization of procurement process with time bound payments, a big support to SME’s.

IRDA to permit Insurance Companies to issue Surety Bonds in place of Bank Guarantees is another welcome step.