The Union Budget 2019-20: How The Industry Has Reacted

The Union Budget 2019-20, presented by Finance Minister Nirmala Sitharaman, has a host of proposals that outline the roadmap to turn India into a US$ 5 trillion economy by FY25. But what does this Budget propose for the Indian electronics industry, and how do experts in the industry view it? Let’s find out.

The India’s first full-time woman finance minister, Nirmala Sitharaman, has announced various proposals while presenting her maiden Union Budget for the fiscal year ending March 31, 2020. It was the first budget of the Narendra Modi government after being re-elected for the second time in an election held in April and May. Presenting the Budget’s blueprint, the minister said that the Indian economy had grown from US$ 1.85 trillion in 2014 to US$ 2.7 trillion within 5 years, and that the Centre had targeted taking it to US$ 5 trillion by FY25. Sitharaman also expressed that investment-driven growth is a must in India as the country required 20 trillion ( 20 lakh crore) worth of investments per year.

The key highlights of the Union Budget 2019-2020 that will impact the Indian electronics industry, startups and power sector are explored in this article.

Electronics

Electronic items made in India are set to become cheaper as the finance minister (FM) announced the withdrawal of custom duty on these items.

The FM has proposed increasing the custom duty on CCTV cameras, IP cameras, digital video recorders and network video recorders to 20 per cent from 15 per cent, in order to provide the domestic industry a level playing field.

Proposed increase in custom duty on the indoor and outdoor units of split air conditioners to 20 per cent from the present 10 per cent to promote domestic manufacturing.

Withdrawal of the custom duty exemption on capital goods used for manufacturing specified electronic items such as cathode ray tubes, CD/CD-R/DVD/DVD -R, deflection components, CRT monitors/CTVs and plasma display panels.

Apple products to get cheaper as FM proposes to ease FDI norms in single-brand retail.

Custom duty

Basic custom duty on certain items to be increased to promote the cherished goal of ‘Make in India’.