The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, has introduced several measures affecting the electronics manufacturing sector. Xiaomi India, a major player in the Indian smartphone market, has responded to these announcements.
Key Budget Provisions for Electronics Sector
- Reduction in Basic Customs Duty (BCD) on mobile phones, PCBAs, and chargers
- Extended exemptions on inputs and raw materials for smartphone manufacturing
- Exemptions on capital goods and related inputs for the electronics industry
- Proposal for a comprehensive review of the tariff rate structure
Muralikrishnan B, President of Xiaomi India, has responded to the electronics manufacturing provisions in the Union Budget 2024, presented on Tuesday by Finance Minister Nirmala Sitharaman.
The budget includes a reduction in Basic Customs Duty on mobile phones, PCBAs, and chargers, along with extended exemptions on inputs and raw materials for smartphone manufacturing. It also proposes a comprehensive review of the tariff rate structure.
“We welcome the Budget 2024 announcement to reduce BCD on mobile phones, PCBA and chargers, while simultaneously extending exemptions on inputs/raw materials for smartphone manufacturing, capital goods, and inputs for capital goods in the electronics industry,” Muralikrishnan said in a statement.
He noted that Xiaomi India manufactures nearly all of its smartphones locally, sourcing components such as PCBA, charging cables, and camera modules domestically. “Today’s announcement will help further strengthen the domestic electronics manufacturing ecosystem,” he added.
Muralikrishnan also commented on broader economic measures in the budget, including initiatives to increase women’s workforce participation and employment incentives for first-time employees. “With these progressive steps, we anticipate a surge in consumer spending, including increased demand for smartphones,” he said.
The full impact of these budget measures on the electronics manufacturing sector and consumer prices remains to be seen. Industry observers will be watching closely to see how manufacturers respond to these changes in the coming months.