Finance Minister Nirmala Sitharaman presented the Union Budget for 2024-25 on Tuesday — this is the seventh Budget to be presented by the finance minister, and the first one under the third NDA government that assumed power last month. The Union Budget will focus on four groups — the poor, youth, women, and farmers, according to the finance minister. It was announced a day after the Economic Survey for 2023-24 was released, with details of the country's short-term to medium-term prospects, as well as suggestions for improving economic growth and increasing investment in the country.
From reducing duties on mobile phone components to measures taken to boost the space sector in the country, the Union Budget 2024-25 has set high goals for the ongoing fiscal year. The government is also looking to boost higher education and employment.
Here are some of the key technology-related announcements made by Finance Minister Nirmala Sitharaman while presenting the Union Budget 2024-25 on Tuesday.
- Mobile phones: One of the most important announcements related to the technology sector that will affect customers is the reduced customs duty on mobile phones and related components. The Union Budget 2024-25 has cut the basic customs duty (BCD) on mobile phones to 15 percent. Meanwhile, the BCD on printed circuit board assemblies (PCBA) and mobile chargers have also been reduced to 15 percent.
- Telecom equipment: The duty on PCBA for telecom equipment in the country has been increased from 10 percent to 15 percent, as part of the Union Budget that was presented by the finance minister on Tuesday.
- Solar technology: Finance Minister Nirmala Sitharaman has announced that a recently launched programme called PM Surya Ghar Muft Bijli Yojana, will enable 1 crore houses to access rooftop solar technology that can deliver up to 300 units of electricity per month.
- Space development: The government will set up a venture capital fund of Rs. 1,000 crore, that will be aimed at growing the nascent space technology sector in India, and the government aims to increase the space economy five-fold within the next decade. Indian firms are expected to benefit from the fund, including several startups related to space technology in the country.
- Education loans: For students in domestic institutions, government will offer support for loans for up to 10 lakh for higher education, according to the finance minister. The Model Skill Loan Scheme will be revised, and students will be able to avail of e-vouchers for loans up to 10 lakh every year — this scheme is aimed at 1 lakh students in the country.
- EPFO and employment: The Union Budget for 2024-25 also includes a direct benefit transfer worth Rs. 15,000 for new employees enrolled with the Employees' Provident Fund Organisation (EPFO). Meanwhile, the government will reimburse companies who hire new workers with up to Rs. 3,000 per employee per month, for the first two years that they are employed at the firm. An "internship allowance" of Rs. 5,000 and one-time assistance of Rs. 6,000 will be provided to encourage top firms to recruit interns.