ELE Times March 2017 ELE Times | Page 56

Market Report

Indian Consumer Electronics and Union Budget 2017-18 – an analysis

In 2016-17, the electronic industry in India has seen the most gainful financial year in four years. Witnessing a hope-infusing budget in 2016, the central Government of India came up with its 2nd Union Budget, on February 1, 2017. With trust comes hope, and hope surges expectations. But when things go too smooth, then it is the stillness before the storm. And this storm came in the avatar of demonetization, the centre’ s step to lash down on the illegal bills of exchange, circulating in the economy. Govt. of India banned the currencies of five hundred and one thousand, w. e. f.
November 8, 2016.
The Appliance and Consumer Electronics
The consumer electronics industry at
industry received a decent blow in this
large sees the brighter side of the
process. A sector in India that runs on
increase in duties and incentives
80 % cash transaction came down to half,
allocations.
in the aftermath.
Welcoming the proposals Manish Sharma,
Now with hopes in eyes, the industry
President and CEO, Panasonic India &
looked forward to the upcoming budget
South Asia, and Executive Officer,
on 1st of February. As demonetization
Panasonic Corporation, states,“ The
affected the sector in the second half of
Union Budget 2017 will have a long-term
the third quarter, relevant measures to
impact, it needs to be analyzed further
soothe the bruises were being looked
when it comes to the appliances and
forward to.
consumer electronics industry. This
The new budget had various measures for
budget, a lot of impetus has gone to rural
the electronics sector.“ We are also
economy and allocation on infrastructure
creating an ecosystem to make India a
by the honorable finance minister. From a
global hub for electronics manufacturers.
consumer electronic company point of
Over 250 investment proposals for
view, we were expecting direction on the
electronics manufacturing has been
upliftment in supply chain and logistics in
received in the last 2 years, totaling an
India. The budget allocated towards M-
investment of Rs1.26 lakh crore,” Finance
SIPs and EPF looks progressive and will
Minister, Arun Jaitley said while
surely reduce dependency on imports in
presenting Union budget 2017-18 in the
the industry.”
Lok Sabha.
Prior to the Budget announcements, the
“ I have therefore exponentially increased
appliances, and consumer electronics
the allocation and incentives of schemes
industry appealed to the Finance Minister
like M-SIPS and EDF to Rs745 crore in
to raise the basic customs duty to 20 per
2017-18, this is an all-time high,” Jaitley
cent for the sector, a measure to
stated.
discourage imports, and enhance local
M-SIPS provides subsidy for capital expenditure- 20 % for investments in special economic zones( SEZs) and 25 % in non-SEZs.
manufacturing. Besides, the industry had also urged implementation of the Phased
Manufacturing Plan, which would boost manufacturing of components.
ELE Times | 56 | March, 2017