India

Union Budget 2018: Reaction from Tech Industry

The Finance Minister (FM), Arun Jaitley has introduced the Union Budget for 2018-2019 yesterday in parliament. Since the announcement, brands across tech industry have had several opinions on the budget. While some brands are happy, others are not happy with this year Union budget.

Analyzing the Union Budget 2018, customs duty on mobile phones and mobile phone spare parts have been hiked by 5% from last year i.e. it has risen from 15% to 20%. This could most likely to hit brands who import mobile phone from another foreign country. Also, all manufacturers have to pay more when importing spare parts into India. This could increase the overall cost of mobile phones in India. But imposing a higher customs duty can force manufacturers to make mobile phones in India, including mobile spare parts which are currently being imported from countries like China.

We have approached technology industry and here what they reacted to the union budget of 2018.

“Since the announcement of Make in India program 3 years back, over 85% of smartphones sold in country are now produced locally. So, this is opportune time to introduce next set of regulations to attract investment in the manufacturing sector and establish India as a global hub for electronics. At OnePlus, we are fully committed to the Indian market and welcome the proposed regulations. Currently, all OnePlus smartphones are produced locally and we are already exploring ways to further increase the share of local manufacturing to ensure there is minimal cost impact of any new regulations to the end customer.” – Vikas Agarwal, General Manager at OnePlus India

 

Mr. Rajesh Aggarwal, Co-Founder Micromax says – “The increase in customs duty on Mobiles will encourage local manufacturing. As India is becoming the global hub for manufacturing, the measures taken by the government will surely grow confidence amongst the manufacturers and I strongly believe that this will further create business and human resource opportunities as well.

The government’s measures towards the import duty on printed circuit boards (PCBs), camera modules, connectors and other components that go into making smartphones, will boost the Make in India initiative and will relentlessly pursue in curbing imports and building value addition in the country. Micromax is deeply connected on the Make in India initiative with 3 running factories and we support this.

 

Kunal Bahl, Co-founder & CEO, Snapdeal, says – “We commend the focus on growing the digital footprint, providing better physical infrastructure, and improving not just the ease of doing business but also ease of living in the country. The enhancement of digital infrastructure with more broadband access in rural parts, unique ID to companies, record allocation to building national highways and railways, and multifold increase in airports will go a long way in broad-basing growth in the economy”

 

Mahesh Lingareddy, Founder & Chairman, Smartron praises the boost to ‘Make in India’ initiative, saying “Union Budget 2018 has given clear indications of a continued focus on the growth of new businesses in India. The announcement of increase in basic customs duty on mobile phones to 20% is a concrete step towards fostering local manufacturing in India which would further fuel indigenous innovation. This will allow us to build an innovation engine pipeline of several global brands in the country. As India’s first global OEM and IOT brand with a vision of putting India on the global innovation map, the Union Budget would prove to be the necessary catalyst for our continued growth towards becoming a multi-billion dollar company globally.”

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