Budget 2022: Here’s what consumer tech industry said about reduced custom taxes

New Delhi: Budget 2022 provides an opportunity to pursue structural reforms in manufacturing, 5G, and cryptocurrencies to help India's GDP develop. This time around, the country received the most GST records, and it was a resounding success. The service industry has been a major driver of India's economic growth.

The manufacturing sector is also reaping its benefits, resulting in the creation of new jobs. In fact, MSME enterprises thrived throughout the Corona administration, and startups will profit greatly from Budget 2022 as well. Let's take a look at what the tech and electronics industries have to say about the Budget 2022.

Vikas Jain, Co Founder and Ceo, World of Play, said "We support the government's focus on technology, it will help many tech based companies like WORLD OF PLAY to come up with exciting product experience for the Indian consumers. We welcome the focus of government on the wearables and acoustic component ecosystem and domestic manufacturing and believe on a long term, this focus will make India as a formidable design and manufacturing powerhouse. 

Additionally the boost in ease of doing business and special impetus on creating 60 lakh new jobs will give a desired push to the goal of becoming Atma Nirbhar Bharat. As a brand, we promote and follow Make in India and we believe long-term policies like this will give us the desired support for the local design and also manufacturing in India."

Vijay Kumar Mikkilineni, Head of Marketing, TCL India said, “We welcome the Finance Minister's increased focus on the consumer electronics industry and formation technology, which will definitely benefit all worldwide companies, including ours. The 2022 Union Budget allocated 1.97 lakh crore ($26 billion) for PLI projects, notably electronic components, which are among the 13 vital sectors that would undoubtedly help our economy expand.

Furthermore, reduced customs taxes will encourage electronics manufacture, which will benefit the electronics industry.”

Lalit Arora, Co - Founder, VingaJoy said, “We welcome the UNION Budget 2022. Concessions in customs duty will be given to promote electronics manufacturing, wearables and hearables devices including concessions on parts of mobile phones including camera modules etc. This will be an encouraging step for companies operating in consumer durables manufacturing. Since mobile phones constitute a major chunk of the country’s electronics exports, the step by the Government is a positive move. The initiative to boost startups and make the market value and position of existing players more promising is well received”.

Mandeep Arora, Managing Director, UBON said, “The Union Budget has tweaked duty on electronics and phone parts in the Union Budget 2022. Revision of customs duties on components or sub-parts of consumer electronics items is a seemingly encouraging step to promote local manufacturing and increase local sourcing of components. This may lead to reduction in cost prices of Mobile phones and chargers.”

He further added, “Another noteworthy point was on how using smartphones to carry on transactions will bring in more transparency in the system.”

"The budget has laid emphasis on technology enabled development with focus on promoting digital economy and fintech, as well as using technology and internet to make education and healthcare more accessible. While the devil lies in the details, the continued emphasis on technology and digitization as means to development should be encouraging for the already thriving fin-tech and IT industry," said Shantanu Jindel (Partner, JSA).

“Government continues to recognize the need of ‘ease of doing business’ -  steps are proposed to be undertaken for removal of overlapping compliances, speeding corporate exits, and an expert committee is proposed to be set up for examining regulatory framework and other frictions for private equity and venture capital funds. This will hopefully continue to improve India’s ranking in terms of ease of doing business; thereby giving impetus to foreign investments in India,” said Prakriti Jaiswal (Partner, JSA).