Budget Boosts Consumer Electronics: Growth & Competitiveness

New Delhi, Jul 23 (PTI) Appliances and consumer electronic industry hailed the Union Budget, saying moves such as duty waiver on critical materials for strengthening semiconductor ecosystem, additional three crore houses under PM Awas Yojana, and focus on energy transition would drive growth for the sector.

With a vision to invigorate the manufacturing sector through various PLI (production linked incentive) schemes, this budget connects these initiatives directly to employment growth, said the Consumer Electronics and Appliances Manufacturers Association (CEAMA).

CEAMA also welcomed the budget proposal to remove customs duties on 25 critical materials essential for strengthening the semiconductor ecosystem in the country.

"These measures are poised to enhance the competitiveness of Indian manufacturers in both domestic and export markets, steering us toward sustained growth, innovation, and global competitiveness," said CEAMA president Sunil Vachani.

Finance Minister Nirmala Sitharaman while presenting the FY25 budget also proposed reduction of import tariff on various critical minerals from 10 per cent to 2.5 per cent.

This includes rationalising tariffs on silicon quartz, silicon dioxide, and components like oxygen-free copper. The exemptions extended to mechanics and die-cut parts, crucial for building a robust silicon and power semiconductor wafer.

"Additionally, the development of rental dormitory-style housing for industries under PPP mode will support manufacturing growth," said Vachani.

Voltas MD & CEO Pradeep Bakshi said the budget reflects a forward-thinking approach that will significantly benefit the consumer durables industry and bolster our efforts towards sustainable development.

"The full exemption of customs duties on 25 critical minerals, including lithium, copper, cobalt, and rare earth elements, is a substantial boost for sectors reliant on these materials, such as high-tech electronics and renewable energy," he said.

This policy will not only enhance the availability of these essential resources but also stimulate domestic processing and refining capacities, driving innovation and reducing costs, Bakshi added.

Havells India CMD Anil Rai Gupta termed the budget as "visionary and forward-looking" and said it outlines key priority areas, underscoring a commitment to employment and skill development, inclusive growth, manufacturing expansion, urban development and infrastructure enhancement.

"The budget has proposed an impressive Rs 2.66 lakh crore for rural development, focusing on infrastructure and manufacturing support," he said.

Moreover, under 'Pradhan Mantri Suryodaya Yojna', empowering one crore homes with solar panels and providing 300 units of free electricity monthly, "this budget sets a robust foundation for India's growth trajectory and reinforces the vision of a sustainable and inclusive future", he said.

Panasonic Life Solutions India and South Asia Chairman Manish Sharma said the fundamental of the budget is for improving and catalysing the rural economic growth, which logically creates a rub-off on the overall growth of the country.

"Focus is now on employment linked incentives moving on the base created by performance linked incentives in the past," he said.

Kent RO Systems CMD Mahesh Gupta said the budget is a catalyst for growth and innovation.

"The new credit guarantee scheme for MSMEs, offering up to Rs 100 crore for collateral-free loans, is expected to significantly benefit smaller manufacturers in the sector. This could lead to increased production capacity and product diversity," he said.

The government's emphasis on innovation and R&D is particularly encouraging. This could drive technological advancements in consumer durables, leading to more energy-efficient and feature-rich products.

Avneet Singh Marwah, CEO of Super Plastronics Pvt Ltd (SPPL), a TV manufacturing company having licences of several global brands, said the budget shows significant measures that directly benefit consumer spending and the nation's economic growth.

"The initiative to allocate 3 crore more houses under PM Awaas Yojna will heighten the growth of entry-level large consumer durables... Incentives for employment in manufacturing and other industries would be expanded, which will promote workforce expansion and strengthen the Made in India campaign," said Marwah

BSH Home Appliances CEO Saif Khan said the enhanced allocation for the Pradhan Mantri Awas Yojana is a significant step towards achieving 'housing for all'.

"This initiative not only addresses the critical need for affordable housing but will also stimulate future demand for home appliances," he said.

Jasbir Singh, Chairman & CEO, Amber Enterprises, said: "Increase in BCD from 10 to 15 per cent on PCBA of specified telecom equipment will enhance localisation, spur domestic manufacturing, and create an ecosystem of augmented manufacturing capacity in the country. This is in line with the government's goal towards Atmanirbhar Bharat.