Finance Minister Nirmala Sitharaman presented the Union Budget 2023-24 on 1st February. She termed the budget as the first budget of the Amrit Kaal. This Budget hopes to build on the foundation laid in the previous Budget, and the blueprint is drawn for India@100.
FM said, “Vision for the Amrit Kaal includes a technology-driven and knowledge-based economy.” Certainly, technology has got the centre stage in the vision for Amrit Kaal. Moreover, of the seven priorities set in the budget, Green Growth has been in the 5th place which is significant for modern technological development.
Agri-Tech:
Based on the Government’s philosophy of Sabka Saath Sabka Vikas, the government has announced support for the growth of the agri-tech industry and start-ups for the inclusive development of the framers. Additionally, the government has announced to set up an Agriculture Accelerator Fund to encourage agri-startups by young entrepreneurs in rural areas. Significantly, the fund aims at bringing innovative and affordable solutions for challenges faced by farmers. Moreover, it will also bring in modern technologies to transform agricultural practices and increase productivity and profitability.
Medical Electronics:
Further, to promote medical research, the union budget 2023-24 announced dedicated multidisciplinary courses for medical devices will be supported in existing institutions to ensure the availability of skilled manpower for futuristic medical technologies, high-end manufacturing and research. Certainly, this will further push medical device research and manufacturing in India. Equally, giving impetus to medical electronics.
Artificial Intelligence:
Meanwhile, for realizing the vision of “Make AI in India and Make AI work for India”, three centres of excellence for Artificial Intelligence will be set up in top educational institutions. Moreover, leading industry players will partner in conducting interdisciplinary research, and develop cutting-edge applications and scalable problem solutions in the areas of agriculture, health, and sustainable cities. undoubtedly, this will galvanize an effective AI ecosystem and nurture quality human resources in the field.
5G:
To further promote the 5G services in India, the union budget 2023-24 has decided to set up one hundred labs for developing applications using 5G services. Further, the labs will be set up in engineering institutions. It will help in realizing a new range of opportunities, business models, and employment potential. Moreover, the labs will cover, among others, applications such as smart classrooms, precision farming, intelligent transport systems, and health care applications.
Battery Energy Storage Systems:
Further, to steer the economy on the sustainable development path, Battery Energy Storage Systems with a capacity of 4,000 MWH will be supported with Viability Gap Funding. Meanwhile, a detailed framework for Pumped Storage Projects will also be formulated.
Skill:
Further, Pradhan Mantri Kaushal Vikas Yojana 4.0 will be launched to skill lakhs of youth within the next three years. On-job training, industry partnership, and alignment of courses with the needs of the industry will be emphasized. Meanwhile, the scheme will also cover new-age courses for Industry 4.0 like coding, AI, robotics, mechatronics, IoT, 3D printing, drones, and soft skills. Further, to skill the youth for international opportunities, 30 Skill India International Centres will be set up across different States.
Vinod Aggarwal, Chairperson, Automotive Skills Development Council, MD & CEO, VE Commercial Vehicles Ltd said, “We applaud the launch of PM Kaushal Vikaas Yojana 4.0. It is an exciting initiative for the Indian youth to skill up in the new-age courses required for Industry 4.0. Further, this scheme covers a wide range of topics critical to Indian manufacturers in the coming years.”
Arindam Lahiri, Chief Executive Officer, Automotive Skills Development Council said, “As an industry and skill domain expert, I am thrilled to see the focus on empowering our youth in this Union Budget. The announcement of PM Kaushal VikaasYoajna 4.0, with its emphasis on industry partnership and alignment of courses with industry needs, is a major step towards skilling the Indian youth in new age courses such as robotics, and mechatronics that are essential for industry 4.0.”
Indirect Tax:
Meanwhile, FM said, “My indirect tax proposals aimed to promote exports, boost domestic manufacturing, enhance domestic value addition, and encourage green energy and mobility.” To further provide impetus to green mobility, customs duty exemption is being extended to the import of capital goods and machinery required for the manufacturing of lithium-ion cells for batteries used in electric vehicles.
Further, to deepen domestic value addition in the manufacturing of mobile phones, the FM has announced to provide relief in customs duty on the import of certain parts and inputs like camera lens and continue the concessional duty on lithium-ion cells for batteries for another year. Moreover, to promote value addition in the manufacturing of televisions, the FM proposed to reduce the basic customs duty on parts of open cells of TV panels to 2.5 percent.
Krishna Moorthy. K CEO & President of the Indian Electronic and Semiconductor Association said, “The support for the core industries remain intact. Deep tech industries get the much-needed boost. Electronics and semiconductor, in particular, is given the impetus to make it contribute about 8-10% to GDP before the end of this decade. Further, meeting the industry expectations of enhanced global exports. India is indeed a benchmark in digital prowess for the world. We at IESA are committed to India being the Digital Nation in all our endeavours.”
Further, Custom Duty rate changes in the union budget 2023-24 are given below:
| IV. | Capital Goods | ||
| 1. | Specified capital goods/machinery for manufacture of lithium-ion cell for use in battery of electrically operated vehicle (EVs) | As applicable | Nil (up to 31.03.2024) |
| V. | IT and Electronics | ||
| 1. | Specified chemicals/items for manufacture of Pre-calcined Ferrite Powder | 7.5 | Nil (up to 31.03.2024) |
| 2. | Palladium Tetra Amine Sulphate for manufacture of parts of connectors | 7.5 | Nil (up to 31.03.2024) |
| 3. | Camera lens and its inputs/parts for use in manufacture of camera module of cellular mobile phone | 2.5 | Nil |
| 4. | Specified parts for manufacture of open cell of TV panel | 5 | 2.5 |
