2019 is critically important! Wherein, the eminent eyes did glue around the budget. With, Piyush Goyal scripting its maiden interim Budget 2019, the electronics and at large the ESDM sector confab on R&D and collaboration on R&D among PSUs, SMEs and start-ups. To that context, Rajesh Ram Mishra, President at India Electronics and Semiconductor Association (IESA), noted nine crucial takeaways from this years budget. Rajesh said, We feel this interim budget by Finance Minister is progressive and inclusive. It focuses on leveraging new technologies to build countrywide digital infrastructure, skill building, driving growth of the MSME segment.
- We applaud the vision to make India a USD 5Trillion economy in the next 5years. We feel a vibrant ESDM sector will play a key role in realizing this vision.
- The focus on National program on AI will unleash large opportunity in intelligent electronics and automation and will create new business opportunity in nine focus areas.
- Making 100,000 villages digital and 10,000 Crore investment in Telecom infrastructure will make universal broadband communication a reality and will lead to pan India deployment of new IoT based solutions.
- Participation of private sector in building products in strategic electronics will get a big boost with INR 300,000Cr Defence spending.
- Allocation for National Education Mission of INR 37,752Cr, coupled with the emphasis on Skill Development will enable easier access to skilled workforce for the ESDM industry.
- The tax relief for people with income less than INR 5L and interest rate subvention of 2 percent will help start-ups, MSMEs in ESDM sector as it will relieve the pressure on working capital.
- 25% Government procurement from MSMEs, announcement to bring PSUs procurement under Government e-Marketplace (GeM) is a welcome change. We would like to see more domestically designed, indigenously manufactured ESDM products to come under this and benefit from PMA.
- While intelligent electronics is bringing new opportunities, to enable large number of successful product companies in India, we hope to see Angel Tax abolished for ESDM start-ups and we also suggest creation of a dedicated fund to incentive R&D.
- This being an interim budget, some of the large scale investments needed in semiconductor and electronics for building a digitally secured India should be taken up post-election.