Union budget 2022 IT & Electronics Industry
This year’s union budget focused on Electronics and IT hardware manufacturing in India. With the help of this initiative plethora of opportunities has emerged for MSMEs in India. Thus, the focus of union budget 2022 was on semiconductor manufacturing. The finance minister of India has announced ₹14,300 crore in union budget 2022 IT & Electronics.
Before we move ahead and understand the benefits and schemes for Electronics and IT hardware manufacturing industry; lets first go through the industry insights.
Electronics and IT hardware manufacturing
Electronics and IT hardware manufacturing is acknowledged as a ‘meta resource’. The electronics and IT hardware industry is the world’s leading and fastest-growing industry and is progressively discovering applications in all sectors of the economy. It has influence in developing infrastructure, increasing productivity, increasing efficiency in the delivery of services, and fostering social transformation is a critical enabler in the country’s economic growth.
As part of Union Budget 2022 announcements, Finance Minister of India laid out objectives for India’s Electronics and IT Hardware manufacturing of components. The Finance Minister said that electronic manufacturing has been proliferating in India. The customs duty rates are standardized to deliver a graded rate structure to encourage domestic manufacturing of wearable devices, like hearing aids, headphones, and electronic smart meters.
The FM also stated that duty concessions are being given to parts of transformers, mobile phone chargers, camera lenses of mobile camera modules, and other similar items and components. During the union budget 2022, she also added that 5G services will be rolled out in India by 2023. A design-led manufacturing endeavor will be launched to manufacture 5G equipment to build a robust 5G ecosystem as part of the Production Linked Incentive (PLI) scheme. Thus, creating opportunities for semiconductor manufacturing in India.
What are the current Trends in Electronic Manufacturing
- Sustained by the government’s Rs 2.3 lakh crore (Rs 2.3 trillion) policy push for Aatmanirbhar Bharat, the domestic Electronics and IT Hardware manufacturing industry is expected to see 30% development in the next financial year to be worth nearly Rs 7 lakh crore (Rs 7 trillion).
- The import of electronics in 2020-21 reduced to around Rs 2.85 lakh crore from about Rs 2.9 lakh crore in 2019-20 due to an increase in local manufacturing of consumer electronics items especially LED television sets and electronic components.
- The government has made a third attempt to invite electronics chip makers in the country with Rs. 76,000 crore incentive schemes spread over a period of six years and is expecting to attract 100+ manufacturers in the next four years under the scheme.
- The mobile phone segment, which is a most important consumer of semiconductors and the biggest contributor to ‘Make in India’ electronics division, remains optimistic of facing the crisis as most of the players manufacturing their devices in India are the major global players who obtain electronics chips on a regular basis with prior commitments to their vendors.
Union budget 2022 IT & Electronics
- The major announcement was the introduction of PLI for large scale electronics and IT hardware manufacturing.
- The Ministry of Electronics and Information Technology (MeitY) outlay for Digital India program in the Union Budget for 2022-23 jumped 67.13 per cent. Around ₹10,676.18 crores has been allocated this year for the programme, up from ₹6,388 crores last year in Union Budget 2022 IT & Electronics.
- “Kick off of PMP for Hearables, Wearables & Smart meters is a continuation of India’s Electronics Atmanirbhar strategy. This will help in building nation’s capability to address an $80 billion global market by 2025.”
The opportunities in electronic component manufacturing are expected to increase and create numerous manufacturing business opportunities for MSMEs due to the Union budget 2022 IT & Electronics announcement. If you would like to know more about the industry insights and what opportunities are available, read our blog “How to start Semiconductor Manufacturing Plant in India?” On other hand, you can contact Solution Buggy experts by registering below.