Union Budget 2024: Key Takeaways – Technology-Related Announcements by Finance Minister Nirmala Sitharaman
Union Budget 2024-25: Focus on Technology, Education, and Employment
New Delhi: Finance Minister Nirmala Sitharaman presented the Union Budget for 2024-25 on Tuesday, marking her seventh budget presentation and the first under the newly formed third NDA government. The budget, announced a day after the release of the Economic Survey for 2023-24, aims to address the needs of four key demographics: the poor, youth, women, and farmers. Alongside economic growth and investment enhancement, the budget features several significant technology-related announcements.
Union Budget 2024: Key Takeaways – Technology-Related Announcements by Finance Minister Nirmala Sitharaman
Mobile Phones and Telecom Equipment
One of the pivotal announcements in the technology sector is the reduction of customs duty on mobile phones and related components. The basic customs duty (BCD) on mobile phones has been lowered to 15 percent. Additionally, the BCD on printed circuit board assemblies (PCBA) and mobile chargers has also been reduced to 15 percent. These measures are expected to make mobile phones more affordable for consumers and boost the domestic manufacturing of mobile components.
Conversely, the budget has increased the duty on PCBA for telecom equipment from 10 percent to 15 percent. This move aims to encourage the local manufacturing of telecom equipment, thereby fostering the growth of the domestic telecom industry.
Solar Technology
A significant step towards sustainable energy is the announcement of the PM Surya Ghar Muft Bijli Yojana. This newly launched program will enable 1 crore households to access rooftop solar technology, providing up to 300 units of electricity per month. This initiative is expected to reduce electricity bills for households and promote the use of renewable energy sources across the country.
Space Development
In a bid to bolster the nascent space technology sector in India, the government has announced the establishment of a venture capital fund worth Rs. 1,000 crore. This fund aims to increase the space economy five-fold within the next decade. Indian firms, particularly startups, stand to benefit from this initiative, which seeks to position India as a significant player in the global space technology market.
Higher Education and Employment
The Union Budget 2024-25 has placed a strong emphasis on higher education and employment. The government will support education loans for students in domestic institutions, offering loans up to Rs. 10 lakh. The Model Skill Loan Scheme will be revised, allowing students to avail of e-vouchers for loans up to Rs. 10 lakh annually. This scheme targets 1 lakh students, facilitating their access to higher education and skill development opportunities.
To further boost employment, the budget includes a direct benefit transfer of Rs. 15,000 for new employees enrolled with the Employees’ Provident Fund Organisation (EPFO). Additionally, companies hiring new workers will receive reimbursement of up to Rs. 3,000 per employee per month for the first two years of employment. These incentives are designed to stimulate job creation and support businesses in expanding their workforce.
Internship and Skill Development
In a move to encourage firms to recruit interns, the government will provide an “internship allowance” of Rs. 5,000 and a one-time assistance of Rs. 6,000. This initiative aims to enhance skill development among the youth and facilitate smoother transitions from education to employment.
Conclusion
The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, sets ambitious goals for the fiscal year, focusing on technology advancement, higher education, and employment generation. By reducing customs duties on mobile phones, promoting sustainable energy through solar technology, investing in the space sector, and supporting education and employment, the budget aims to drive economic growth and improve the quality of life for millions of Indians. As the government implements these measures, the coming months will reveal their impact on the country’s technological landscape and economic development.
Also Read: India Unveils Ambitious Budget for 2024-2025: A Roadmap to ‘Viksit Bharat’