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