As India stands poised to maintain its status as a GST powerhouse and grow faster than any other country (GDP-wise), the 2024 Budget presents a pivotal opportunity to implement structural reforms across the manufacturing, telecommunications, and mobile sectors. These reforms are expected to contribute to the country’s burgeoning GDP significantly.
The service sector, a longstanding pillar of India’s economic ascent, continues to thrive, driving growth and innovation. Simultaneously, the manufacturing sector is experiencing a renaissance, with new policies set to spur job creation and industrial expansion.
In light of these developments, the tech and gadgets industry is keenly observing the implications of Budget 2024. The sector’s insights and responses will be crucial in understanding the broader impact of these reforms on India’s economic landscape. Let’s see what the tech and gadgets industry has to say about Budget 2024.
“We welcome the Budget 2024 announcement to reduce BCD on mobile phones, PCBA and chargers, while simultaneously extending exemptions on inputs/raw materials for smartphone manufacturing, capital goods, and inputs for capital goods in the electronics industry.
At Xiaomi India, we have been manufacturing nearly 100% of our smartphones locally with a strong emphasis on sourcing components like PCBA, charging cables, camera modules, and mechanics, among others. Today’s announcement will help further strengthen the domestic electronics manufacturing ecosystem.
The proposal for a comprehensive review of the tariff rate structure is another positive step that will further strengthen the industry.
We appreciate the government’s emphasis on increasing women’s participation in the workforce and the employment-linked incentives for first-time employees. With these progressive steps, we anticipate a surge in consumer spending, including increased demand for smartphones.” said, Mr. Muralikrishnan B, President at Xiaomi India.
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“Today’s budget presented by the Finance Minister is a forward-thinking roadmap that promises to drive sustainable growth and foster a robust digital economy. The strategic focus on technological advancement, infrastructure development, and skill enhancement is a commendable step towards making India a global tech hub. At Acer India, we are particularly encouraged by the government’s commitment to supporting the IT sector through initiatives that promote innovation, research, and development. Furthermore, the proposed measures to boost manufacturing under the ‘Make in India’ initiative align perfectly with our strategic goals, enabling us to expand our local manufacturing capabilities and contribute to the country’s economic growth. We are optimistic about the opportunities this budget creates for the IT sector and the overall business landscape in India. It sets a positive tone for the future, encouraging us to continue innovating and providing top-tier solutions for our customers. Additionally, the focus on the rural economy is a significant highlight. By investing in rural infrastructure and promoting digital literacy in rural areas, the government is paving the way for inclusive growth. This will enable rural communities to participate actively in the digital economy, thereby reducing the urban-rural divide and fostering a more balanced economic development.” said Alok Dubey, Chief Financial Officer, Acer India
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“The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, has adopted a strategic approach for fostering economic growth while bolstering India’s technology landscape. The planned upgrade of 1,000 Industrial Training Institutes (ITIs) through a hub-and-spoke model, along with the alignment of course content to industry needs, reflects a proactive strategy to address the skills gap in the workforce and prepare students for the evolving job market. Such an emphasis on skill development and education bodes well for not only the emerging workforce but also interactive technology companies.
For display and interactive tech companies, which provide interactive flat panels and other technological solutions for educational institutions, this budget presents significant opportunities. The focus on upgrading ITIs and enhancing skill development aligns with the mission to support educational advancements through technology. By integrating interactive learning tools into these upgraded institutions, tech companies can contribute to creating an engaging and effective learning environment that fosters skill acquisition and prepares students for future challenges. This alignment between government initiatives and private sector capabilities is crucial for driving educational transformation in India.” – Mr Rajeev Singh, Managing Director, BenQ India and South Asia
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Varun Gupta, Co-Founder, BOULT
“We’re thrilled about the Finance Minister’s recent announcement to simplify FDI rules and make things easier for investors. This is a big win for the Indian startup scene and will bring in more investment, drive innovation, and boost growth.
The removal of the angel tax is great news for early-stage startups and shows the government’s support for startup funding. The focus on creating jobs, developing skills, supporting MSMEs, and boosting manufacturing is setting the stage for a better India.
The new Credit Guarantee Scheme for MSMEs, along with the push for skill development and easier FDI regulations, is a solid approach to promoting growth and making us more competitive globally. Plus, the government’s focus on upskilling the youth and embracing advanced manufacturing and digital tech is giving us a competitive edge.
And the drop in customs duty on PCBs for mobile phones is a game-changer for the electronics industry. Lowering the duty from 20% to 15% will make electronics more competitive and also boost growth for the wearables market.”
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Mr. Amit Khatri, Co-Founder, Noise
“The Union Budget 2024 presented by Finance Minister Nirmala Sitharaman is a visionary step towards inclusive growth, with a strong emphasis on manufacturing, upskilling, and women empowerment. Youth and participation of women in the workforce hold the key to India’s success. To this end, the focus on extensive training and skill development initiatives demonstrates a clear commitment to boosting employability and productivity. By linking job creation in manufacturing to first-time workers and offering EPFO incentives, the government is paving the way for a robust manufacturing ecosystem, creating 4 crore jobs over the next five years. It is certainly a commendable initiative to boost local manufacturing. Additionally, offering internship opportunities in the top 500 companies to 1 crore youth is a strategic move that will equip our young population with the skills and experience necessary to thrive in a competitive global economy.
The establishment of e-commerce export hubs in a PPP model is another significant step taken by the government and will significantly empower MSMEs and traditional artisans to compete internationally. It will open opportunities for Indian players to boost their reach globally while enhancing the ease of doing business and accessing new markets. India has long been an attractive consumer market for international brands, supported by our collaborative and business-friendly policies that enable seamless operations. The export hubs are 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.
Lastly, I feel the abolition of the angel tax will undoubtedly boost funding in the startup ecosystem, fueling innovation and growth. This move, along with incentives for job creation in the manufacturing sector and support for MSMEs, will not only stimulate valuable employment opportunities for millions of young people but also ensure economic resilience, laying a strong foundation for a powerful growth trajectory for India. Driven by the vision of Viksit Bharat, we look forward to actively participating in the nation’s journey towards global prominence and innovation leadership.”
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Bipin Gupta, Product Manager, EZVIZ
“The 2024 Union Budget brings hopeful developments for the smart home security sector. As a global leader in smart home solutions at EZVIZ, we are encouraged by the government’s focus on enhancing infrastructure and consumer spending.
The increase in the standard deduction to Rs 75,000 and the revised tax slabs—where individuals earning up to Rs 3 lakh will pay no tax, and those earning between Rs 3 lakh to Rs 7 lakh will benefit from a 5% tax rate—are likely to increase disposable income. This, in turn, could drive greater adoption of smart home technologies as consumers will have more flexibility to invest in such solutions.
The allocation of Rs 50,000 crore towards infrastructure development will also improve urban and residential environments, creating new opportunities for integrating advanced security systems in both new and existing properties. We at EZVIZ look forward to leveraging these positive changes to continue offering cutting-edge products that enhance safety and convenience for families worldwide.”
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“The Budget 2024’s strong emphasis on youth empowerment, job creation, and employment-linked skilling is optimistic. Over the next five years, the Hon’ble FM has devised a plan to provide employment possibilities for almost 4.1 crore youth. The allocation of Rs 1.48 lakh crore for employment and education to skill 20 lakh youth over five years is another noteworthy milestone. Jobs are the primary driver of economic growth, and putting new initiatives and allocations into practice would not only improve the employment situation but also have a significant impact on developing a trained labour force for all industries, including online skill gaming. The sunrise industry has consistently played a pivotal role in providing opportunities to Bharat’s talented young individuals. We welcome today’s budget as a positive development. The online gaming industry is excited to partner with the government towards a Vikasit Bharat by becoming a centre for global gaming innovation.”, said, Anuraag Saxena, CEO of E-Gaming Federation.
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Mr. Rajesh Doshi, Co-founder & Director at Zebronics.
“The Union Budget 2024-25, announced by Finance Minister Nirmala Sitharaman, presents a robust vision for various sectors’ enhancement. The new tax regime reforms benefit law-abiding taxpayers. Job creation schemes are proposed across segments, particularly manufacturing, to drive “Vikasit Bharat.” Support for MSMEs and manufacturing includes long-term loans for machinery, credit guarantees, and establishing electronic manufacturing clusters, enhancing global competitiveness. Skill development initiatives introduce new courses, revise loans, and develop National Industrial Corridors to connect top companies with CSR funds, aiming to benefit over 1 crore youth in the next five years. The reduction of Basic Customs Duty on mobiles and accessories and PCDA is a strategic move to support these industries. Overall, steps to ease trade, reform manufacturing, and support the start-up ecosystem are vital. Reforms in solar, energy, agriculture, and education are crucial for holistic national development. Notably, the commitment to enhance the inclusion of more women in the workforce by formulation of skill development programs and encouragement of more women entrepreneurs reflects the virtue of them being amongst the decision-makers in the future.”
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Arijeet Talapatra, CEO, Transsion India said, Transsion India welcomes the Ministry of Finance’s decision to reduce the basic customs duty from 20% to 15% on mobile phones, mobile PCBA, and chargers. This policy change will significantly benefit both manufacturers and consumers, fostering a more competitive smartphone market and strengthen our position in the global market. This move will undoubtedly bolster the industry’s growth making smartphones more affordable and we remain committed to the ‘Make-in-India’ initiative to bring the best-in-class smartphones to the ever-evolving Indian market.
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Mr Avneet Singh Marwah, CEO, Super Plastronics Pvt Ltd, a Kodak brand Licensee
“I commend the forward-looking measures introduced in Union Budget 2024, especially the revised tax structure and increased standard deduction, aimed at boosting consumer spending and nurturing economic growth. The allocation of an additional 3 crore houses under PM Awas Yojana will provide a significant boost to the market for large consumer durables. The proactive efforts of the government to enhance ease of doing business in the manufacturing sector are evident and commendable. The introduction of new employment incentives across manufacturing and other sectors will not only spur workforce expansion but also bolster the Make in India initiative, complementing existing PLI schemes. However, there was an expectation within the industry for more aggressive measures aimed at increasing disposable income to further stimulate consumer spending.”Please let me know if you need any additional information.”
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Sanket Shah, CEO and Co-Founder, Invideo – The removal of the Angel Tax is a big win for Indian startups. This bold move, along with the Anusandhan National Research Fund will supercharge our startup and tech-led research ecosystem. We’re creating an environment where startups can now dream big, innovate fearlessly, and build global giants from India, especially in the field of AI/Tech, amongst others. This budget clearly signals India’s intent to become a global innovation powerhouse.
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Mr Chirag Sharma, CEO, Drone Destination said “We welcome the budget’s focus on creating digital agriculture, employment generation, skill development, and women in the workforce. At Drone Destination, we continue to be a lead player in the Namo Drone Didi program to train and empower women drone entrepreneurs from self-help groups in rural areas. We look forward to carrying our extensive drone mapping experience from schemes like SVAMITVA to support the creation of digital public infra in agriculture. Additionally, our recent MoU with NSIC to establish drone training centers nationwide aims to skill and develop a future-ready workforce for the growing demands in the Indian drone eco-system
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Mr. Arjun Prasad, Co-Founder and Chief Strategy Officer, QX Lab AI
“The abolition of the angel tax for all classes of investment is a monumental step towards fostering a vibrant startup ecosystem in India. This move will boost the entrepreneurial spirit and drive innovation, giving startups greater access to essential capital., particularly in the AI sector, which is expected to be a game changer for businesses and economies.
Upgrading 1000 industry training institutes in a Hub and Spoke arrangement will bridge the skill gap and prepare youth for future jobs. The emphasis on women-led development and AI-driven upskilling for women highlights a commitment to gender equality and inclusive growth. Public investment in digital infrastructure and private sector innovation showcases the power of technology in enhancing access to essential services. Initiatives like the Jan Vishwas Bill and the Anusandhan National Research Fund, with a pool of Rs 1 lakh crore, will propel research, innovation, and ease of doing business.
We appreciate the government’s steadfastness in fostering the startup community. This futuristic approach will place India at the top of the generative AI list thus, promoting economic activities, embracing innovation, and fighting inequality through inclusivity.”
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“For faster economic growth, the only way is to focus on upskilling the youth of the country on the latest skills that helps in increasing the job opportunities as well as average income for all. We welcome the budget with strong emphasis on upskilling, and higher education & eventually leading to jobs. This is the need of the hour to make India a skill hub for the world and it will fuel the $5 trillion vision. A big ray of hope for young graduates or undergraduates where financing was a challenge, especially for those whose parent’s incomes are not consistent like farmers, etc. With higher education loans, upskilling scheme & upgradation of Industrial Training Institutes, I believe it will certainly boost the employability.” said Mr Diwakar Chittora, Founder & CEO, Intellipaat.
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Anand Dubey, CEO, Indkal Technologies said, the Union Budget, as presented by the Hon’ble Finance Minister, aligns well with our nation’s priorities and strategic goals.
The move to reduce the basic customs duty on mobile phones, PCBAs, and mobile chargers to 15% is a progressive step that highlights the maturity and growth potential of the Indian mobile industry. This reduction will not only benefit consumers but also bolster our domestic manufacturing capabilities, allowing India to compete more effectively on the global stage. The proposed exemptions on key components like oxygen-free copper and parts for connectors are also commendable steps that will further strengthen our electronics manufacturing ecosystem. By simplifying the duty structure and incentivizing the manufacturing sector, India is poised to be competitive globally. We applaud the strategic initiatives outlined in this budget, which advance the vision of positioning India as a global manufacturing hub.
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Mr. Manish Sharma, Chairman, Panasonic Life Solutions India and South Asia.
“In the last few budgets, we have seen the Government take a structured approach and enable a growth-oriented environment for various sectors such as agriculture, infrastructure, Digital platforms, Skilling, and Manufacturing among others. It is good to see this continue in the current Union Budget with nine priority areas covering farmers, women, youth and the poor. The fundamental of the Budget is for improving and catalyzing the rural economic growth of the country which logically creates a rub-off on the overall growth of the country, simultaneously keeping the capex equal to what it was in the interim budget.
Today, in line with the structured approach of ensuring that all the sectors of the economy and society were taken care of, the Hon’ble Finance Minister started by highlighting the bedrock of the economy, which is the farming sector and then moved on to future opportunities by way of skilling. The focus is now on Employment Linked Incentives moving on the base created by Performance Linked Incentives in the past.
The budget also focuses on a critical aspect of creating jobs in the manufacturing and services domain. In my view, while in the recent past, a lot of impetus was given on large-scale manufacturing, the Government has brought the focus back on MSMEs to drive labour-intensive manufacturing. MSMEs will now stand to benefit from the credit guarantee scheme which will bolster their growth enabling them to purchase critical machinery and equipment without collaterals thus contributing to the Make-in-India initiative.
The Government is also seen here to encourage Public-Private Partnerships and investments in industrial parks. Another highlight of today’s budget was energy security through energy transition focusing on accessibility and affordability of energy and safeguarding the critical minerals from a long-term perspective. The alignment of duty structures on such minerals also enables a phased approach to manufacturing energy storage devices.
We also welcome the rationalization of custom duties for essential electronic components towards enhancing manufacturing. These steps will streamline operations, boost manufacturing capabilities, and make India an attractive destination for electronics production. The Hon’ble Finance Minister has kept the common man at the forefront with increase in standard deductions made as per the new tax regime.
Overall it’s a well-balanced approach with mid to long-term objectives in consideration.”
