The government has lowered basic customs duty (BCD) on open cells and carrier-grade Ethernet switches, while BCD on flat panel displays has increased.
Finance Minister Nirmala Sitharaman with MoS Pankaj Chaudhary ahead of the Union Budget 2025 announcement
Photo Credit: Press Trust of India
Finance Minister Nirmala Sitharaman on Saturday announced several new measures and schemes as part of the Union Budget 2025. The second budget of the NDA government's third term will expand broadband connectivity to government schools, and take efforts to boost manufacturing of solar cells, grid-scale batteries, and other products. The budget will also provide insurance coverage for nearly 1 crore gig workers, while loan limits under the PM Swanidhi scheme will be increased, along with a new Rs. 30,000 credit card linked to the NPCI's unified payments interface (UPI).
"The government's revision of Basic Customs Duty (BCD) will bolster domestic manufacturing, bringing us closer to Prime Minister Narendra Modi's ambitious $500 billion (roughly Rs.43,32,500 crore) electronics manufacturing target. The increase in BCD on interactive flat panel displays from 10 percent to 20 percent, combined with the reduction on open cell and other LCD/LED components to 5 percent, is a forward-thinking policy move that will provide a significant boost to domestic manufacturing champions like Dixon," said Prabhu Ram, VP - Industry Research Group (IRG), CyberMedia Research.
"The Union Budget 2025 brings good news for the industry, including the consumer electronics manufacturing sector. New reductions on BCD for important components means that localisation of parts such as batteries and displays will rise," Counterpoint Research Director Tarun Pathak told Gadgets 360.
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