Dr V Veerappan, Chairman, IESA
The Union Budget 2024 appears promising for the government’s commitment to making India a global powerhouse for electronics production. The funding for product development and the creation of an ecosystem for electronic components is an important step and will play a catalyst in product creation and building a component ecosystem. The budget allocation of Rs 1 lakh crore to support commercial private-sector research will serve as a critical impetus for the sustained momentum of the Electronics and Semiconductors sector, as well as for R&D, innovation, and technological advancement. We are in favor of the government’s prospective incentives for job growth in the industrial sector, as well as the direct benefit transfer plans for new employees. These measures will not only increase employment but also cultivate a culture of quality and innovation throughout the industry. On the FLIP side, India should be cautious on FDI from China in this strategically important sector.
Ashok Chandak, President, IESA
IESA welcomes the budget’s strong focus on manufacturing, job creation, MSME support, women’s employment and rationalisation of customs duty. The initiatives mentioned are expected to act as catalysts for creating a new workforce in the thriving semiconductor and electronics sector which is facing an acute shortage of relevant skills. Additionally, allocating 1 lakh crore for research, removal of Angel tax, and support for prototypes will bolster local R&D, product innovation, and the startup ecosystem. However, caution is warranted regarding China’s FDI in this strategically vital sector. Any move to relax FDI norms for China in electronics and semiconductors could potentially stifle the emerging electronics components industry and have long-term implications for the telecom, defence, and aerospace sectors which are crucial for India’s security. IESA is working with MeitY on the new National Policy on Electronics and hope some of the measures for product development in the Electronics and Semiconductors verticals, Increased support toward enhancing local value addition and PLI for electronic components would get covered.
Dr. Ajai Chowdhry, Co-Founder HCL, Founder & Chairman, EPIC Foundation and Chairman-Mission Governing Board, National Quantum Mission
“The new budget is a game-changer! Significant impetus has been provided by the government to further strengthen the startup ecosystem. Happy to see support for Space Tech and a generous ₹1 Lakh Crore allocation for R&D in the private sector. The support for small nuclear reactors is commendable; moreover, the abolishing of the Angel Tax will go a long way in bringing greater investments, making it a big win for startups. Similarly, there’s great support for MSMEs and an impressive job-linked incentive scheme. The focus on Ease of Doing Business and the introduction of plug-and-play manufacturing infrastructure under PPP, along with worker dormitories, is a well-rounded approach to foster growth and innovation.”
