By Manish Sharma, Chairman, Panasonic India
The Union Budget has prioritised economic progress by placing a strong emphasis on tax reforms, fostering innovation and skill development. Amongst several benefits, one of the most awaited news for both for middle class and senior citizens, is the income tax reliefs — which will boost consumer spending and reduce the compliance burden forthe businesses.
The Budget marks a pivotal step in accelerating India’s leadership in technology and AI. The announcement of a Rs 10,000 crore Fund of Funds and the exploration of a dedicated Deep Tech fund is a big step towards strengthening India’s startup ecosystem. This initiative will provide much-needed impetus to startups working on cutting-edge technologies such as AI, robotics, blockchain, and clean energy. The allocation of 10,000 PM Research Fellowships over five years is a visionary move to nurture world-class talent and anchor India as a global R&D hub.
For the industry there have been several key announcements aimed at fostering manufacturing, growth and strengthening the Indian economy:
o Rationalisation of customs tariff structure is yet another welcome move. The approach of aligning inverted duty structure and increase in BCD on interactive flat panel displays from 10% to 20%, will be an enabler for enhancing manufacturing in India. Reduction of duty in components for manufacturing Open Cell is in the direction towards making a robust manufacturing base for LCD/LED TV panels.
o The announcement on BCD exemption for critical minerals like cobalt will help India overcome disabilities that exist for manufacturing of lithium-ion batteries as compared to other countries. Additionally, exemption of duty on scrap of lithium-ion batteries will fuel the efficiency and capacity utilisation of recycling units that are already
in abundance inour country.
o Establishment of Bharat Trade Net is a good move as it will bring commerce, MSME and revenue ministries together and build inter-ministerial dialogues – a unified platform to streamline trade documentation, policy interventions, supply chain efficiencies and financing needs for businesses.
o The industry awaits the National Manufacturing Mission under the Make in India initiative with a focus on cleantech to help diversify manufacturing across states.
o Enhanced investment and turnover limits for MSMEs aimed at empowering MSMEs will help scale up, innovate and generate more employment opportunities for the Indian talent further bolstering the manufacturing economy.
o Additionally, establishing five National Centres of Excellence for Skilling reflects a full-circle approach to equipping our youth for ‘Make for India, Make for the World’ manufacturing. The continued push for innovation through 50,000 Atal Tinkering Labs is a commendable step in nurturing scientific temper and creativity among young minds.
