On July 05, 2019 India’s Finance Minister, Nirmala Sitharaman presented Union Budget 2019-20 in Parliament. Though there was not any major announcement for electronics and semiconductor industry but Electric Vehicles have been a major attraction. An announcement for Electric Vehicles and many investment schemes for global companies have set up a route to boost the economy of India by setting up manufacturing hubs. The budget also proposed greater adoption and investment in emerging technology. Here are some major highlights of Union Budget 2019-20 for Electronics and Technology.
Electric Vehicles dominated Electronics Industry
- To take Electric Vehicles to the masses, an additional income tax deduction of Rs 1.5 lakh on interest paid on electric vehicle loans announced.
- Custom duty exempted on certain parts of electric vehicles till the local manufacturing is up and running.
- Goods and Service Tax (GST) on electric cars reduced from 12 percent to 5 percent.
- The government aims to make India a global EV and battery manufacturing hub.
- To encourage faster adoption, incentives have been proposed on purchase and charging infrastructure of Electric Vehicles.
Greater focus on Innovation and Research
- Focus to prepare the youth of India on globally valued skill sets including Artificial Intelligence, Machine Learning, Internet of Things, Robotics, Virtual Reality, Big Data and 3D Printing.
- National Research Foundation (NRF) has proposed to fund, coordinate and promote research in the country in order to strengthen the overall research eco-system of the country.
Mega investment in Advanced Technology areas
- To invite Global companies for setting upmanufacturing plants in India for areas of Semi-conductor Fabrication (FAB), Lithium storage batteries, Laptops, computer servers and Solar Photo Voltaic cells.
Aerospace & Defence
- To launch space and other satellite programmes like Chandrayan and Gaganyan.
- Defence equipment not manufactured in India exempted from basic customs duty.
India’s Power Sector
- “One Nation-One Grid” to reduce power cost for States to have a positive outcome for the industry.
- Blueprints to be made available for gas grids, water grids, i-ways, and regional airports.
Change in Basic Custom Duty
- Custom duty increased on Optical Fibre, CCTV Camera, DVR, Split AC, Loudspeaker
- Exemptions from Custom Duty on certain electronic items now manufactured in India withdrawn.
- Solar stoves and battery chargers to be promoted using the approach of LED bulbs mission.
- Setting up of 20 technology business incubators in 2019-20 under the Aspire scheme.