Finance Minister Nirmala Sitharaman's Eighth Union Budget Focuses on Technology and Manufacturing

In a move that promises to make technology more accessible to the masses, Finance Minister Nirmala Sitharaman, during her eighth consecutive Union Budget presentation, announced significant cuts in customs duties on a range of electronic goods. This strategic decision is aimed at bolstering the country's smartphone and television manufacturing ecosystem, making these essential devices more affordable for the average consumer.

Boost for Domestic Manufacturing

Sitharaman proposed adding 28 more capital goods to the exempted list for mobile phone battery production, alongside 35 additional capital goods for EV battery manufacturing. "This will boost domestic manufacture of lithium-ion battery, both for mobile phones and electric vehicles," she stated, highlighting the government's commitment to enhancing India's manufacturing capabilities in the tech sector.

Custom Duty Exemptions and Digital Inclusion

The exemption of custom duty on inputs and parts for smartphones and TVs is expected to reduce costs significantly. Additionally, in a push for digital inclusion, the government plans to provide broadband connectivity to all government schools under the BharatNet project, ensuring that the digital divide is bridged effectively.

Interactive Flat Panel Displays to See Duty Increase

Addressing the inverted tariff structure, Sitharaman announced an increase in the basic customs duty on interactive flat panel displays from 10% to 20%. This move is expected to encourage local manufacturing and reduce dependency on imports.

Conclusion

The 2025 Union Budget, with its focus on technology and manufacturing, aims to make essential electronic goods more affordable while promoting domestic production. The government's initiatives are set to transform the tech landscape in India, making it a global hub for manufacturing and innovation.