Finance Minister Sitharaman is set to unveil her seventh budget in Parliament on July 23. High anticipation and expectations surround the budget, with various sectors eagerly awaiting its contents. Smartphone buyers, in particular, are anxious to see if the budget will make phones more affordable.
The government last year slashed import taxes on key components like camera lenses in a bid to ramp up India’s mobile phone manufacturing. Additionally, FM extended a reduced tax rate on lithium-ion batteries, a key component for phones and electric vehicles. This policy shift aims to make it cheaper for companies to manufacture phones within India.
The NDA-led government could recalibrate India’s flagship program to boost domestic manufacturing- the Production Linked Incentive (PLI) scheme in its upcoming budget. Designed to incentivise companies to manufacture locally, the PLI scheme offers financial rewards based on increased domestic production. This aims to enhance the competitiveness of Indian-made goods globally, spur large-scale manufacturing, and attract investments in promising sectors. The program targets industries where India has the potential to become a world leader, fostering job creation and export growth.
Having rolled out PLI schemes for 14 key sectors like electronics,textiles, and more, the government is now considering expanding the program to include additional areas. Additionally, recognising the ongoing challenges faced by manufacturers, some existing PLI schemes are being reopened to provide fresh opportunities and extend the benefits to a wider range of companies.