India’s Finance Minister Presents Ambitious Budget for 2024-25, Focuses on Technology and Economic Growth
Finance Minister Nirmala Sitharaman presented the Union Budget for 2024-25 on Tuesday, marking the seventh Budget under her tenure and the first under the third NDA government. The Budget focuses on four key groups: the poor, youth, women, and farmers, with a range of initiatives aimed at boosting economic growth and investment in the country.
The Budget includes several key technology-related announcements that are set to impact customers and businesses alike. One of the most significant is the reduction in customs duty on mobile phones and related components, with the basic customs duty (BCD) on mobile phones cut to 15 percent. The BCD on printed circuit board assemblies (PCBA) and mobile chargers has also been reduced to 15 percent.
In addition, the Budget has increased the duty on PCBA for telecom equipment from 10 percent to 15 percent. This move is expected to boost the domestic manufacturing of telecom equipment and reduce the country’s reliance on imports.
The Budget also includes a range of initiatives aimed at promoting solar technology and space development in India. The government has announced the launch of a programme called PM Surya Ghar Muft Bijli Yojana, which will enable 1 crore houses to access rooftop solar technology that can deliver up to 300 units of electricity per month. The government has also set up a venture capital fund of Rs. 1,000 crore to promote the growth of the space technology sector in India, with the aim of increasing the space economy five-fold within the next decade.
Other key technology-related announcements in the Budget include the introduction of a direct benefit transfer worth Rs. 15,000 for new employees enrolled with the Employees’ Provident Fund Organisation (EPFO), and the reimbursement of up to Rs. 3,000 per employee per month for the first two years of employment. The government has also introduced an “internship allowance” of Rs. 5,000 and one-time assistance of Rs. 6,000 to encourage top firms to recruit interns.
Overall, the Budget is expected to have a significant impact on the technology sector in India, with a range of initiatives aimed at boosting economic growth, investment, and employment. The government’s focus on promoting solar technology and space development is also expected to have a positive impact on the country’s energy security and its ability to compete in the global economy.
