Mobile phone manufacturing, quantum computing, and more: Union Budget 2020

Here are some quotes by the Indian industry on the Union Budget 2020

Rajan S Mathews, DG, COAI

We welcome the Government’s overarching positive theme for the Budget 2020-21, that includes enabling an aspirational India, through major fundamental structural reforms targeted at fostering healthcare, education, skill development, ensuring economic development for all and further a caring, humane and compassionate society. The Hon’ble Finance Minister Smt. Nirmala Sitharaman, emphasised on country’s growth and Digital inclusion will hinge on advanced technologies such AI, Robotics, Machine Learning, analytics, among others, which essentially relies on telecom infrastructure.

However, while the Union Budget laid major emphasis on boosting domestic manufacturing of network products, mobile phones, electronic equipment, semi-conductors and healthcare products and has allocated INR 27,300 crore for the development of industry and commerce by 2021, it is disappointing that there were no announcements made regarding the rationalisation of levies and taxes currently imposed on the severely distressed telecom sector and telecom infrastructure is not taken into consideration that is going to build out the country.

The Budget proposed that the New India will be driven by innovations, AI and computing where data will be the new oil and other significant initiatives such as linking of 1 lakh gram panchayat to the Bharat Net program by this year and an allocation of INR 6,000 crore in this regard, none of our key recommendation appear to have been taken into consideration. A financially healthy and robust telecom sector is imperative to support all these future forward initiatives. It is also disappointing to note that telecom was not given an infrastructure status even though a slew of crucial reforms has been announced on infrastructure. The telecom sector, which is the backbone of the country’s economy, did not receive significant support.

Jitendra Chaddah, Chairman, IESA

The vision for the semiconductor and electronics industry in the budget speech is encouraging. We feel this interim budget by Finance Minister is progressive and inclusive. It focuses on leveraging new technologies to build countrywide digital infrastructure, skill-building and drives growth by providing cost benefits for electronics manufacturing in India. The scheme to boost the intelligent electronics & semiconductor ecosystem by the manufacturing of mobile phones, semiconductor packaging and electronic equipment, assures more investment. We foresee the sustained incentives by the government to promote local manufacturing will fulfil local demand and also enable India to become an export hub for electronics.

Sundar Sampath, CFO, CSS Corp.

Quantum computing is a field with tremendous potential applications to accelerate complex problem solving, with far-reaching benefits to humankind. Early movers can gain a strong head start and dominate in the times ahead. It is encouraging to see that the government has set aside an allocation of Rs 8,000 crore for the National Mission on Quantum Computing and Technology. We hope this will help India gain a strong foothold in this fast evolving space. Also, the focus on data center parks, improved connectivity, and emerging technologies is a step in the right direction to make India a digital economy.

Purushothaman KG, Partner, Telecom Sector, Leader, KPMG

The Honourable Finance Minister made important references in Budget 2020 to the power of new age technologies like AI, IoT and data analytics to shape the way we live and work. Telecom, and more broadly digital communications infrastructure, support all these applications and in this regard, the allocation of INR 6,000 crore in FY21 to hasten the implementation of BharatNet is very welcome.

The government is rightly ensuring that citizens at the village level are part of the digital network with its goal of linking 100,000 gram panchayats in FY21 to the FTTH backbone. The Finance Minister also proposed a scheme to promote the manufacturing of mobile phones in India. Finally, as the Finance Minister said, data is the new oil, and we look forward to reviewing the policy to enable the private sector to build data centre parks throughout the country.

However, some of the expectations of the debt laden sector in the form of reduction of levies and relief/ moratorium on current dues, seem to remain unaddressed in the budget. We hope some of the post budget policy reforms will seek to provide the much-needed support to the sector.

Sanjay Gupta, VP and India Country Manager, NXP Semiconductors

The Union Budget 2020 takes a pragmatic approach to spur sustainable growth by maintaining focus on core aspects of the economy. It’s a progressive budget that lays thrust on the sectors which will enable India’s economic growth. We are excited to know that the government aims to make India a manufacturing destination for mobile phones, electronic components and semiconductors, and keenly look forward to a detailed policy for the sector as it can pave the path towards making India a major semiconductor hub in the coming times.

We also welcome the budget allocation of Rs. 8000 crores for quantum computing, that can open up a lot of new opportunities and commercial applications in the future. The government’s focus on new-age technologies like data analytics, IoT and AI and improvement of digital connectivity can help the country achieve its goal of becoming a $5 trillion economy by 2025. Extensive use of these technologies will enable stakeholders across tiers to make faster and more evidence-backed decisions leading to business growth.”

Mike Chen, MD, India, TCL

At TCL, we believe that the Finance Minister has announced an encouraging Union Budget 2020. Proposing the scheme to encourage the manufacturing of mobile phones, semiconductor packaging and electronic equipment is a welcomed move and we look forward to a complete policy and leveraging the same to kickstart the domestic manufacturing through our panel factory in Tirupati.

Furthermore, painting a futuristic picture in this year’s budget announcement, the FM also acknowledged advanced technologies like IoT, AI, and analytics changing the world. At TCL, we are forever committed to advancing our ‘AI x IoT’ ecosystem in India and will continue to invest in cutting-edge technologies to offer the best services to our customers in India.

Satya Easwaran, Partner and Leader, Markets Enablement and Leader-,Technology, Media and Telecom, KPMG

In Budget 2020, technology has been clearly recognised as both a disruptor and enabler of new models of business and lifestyles. The government is looking to the future and the next generation of quantum technologies with the announcement of INR 8,000 crore for further R&D in this field. Start-ups are receiving due attention with measures announced to not just provide early life funding from the government to support ideation and development, but also ensure that innovation and associated IP can be protected.

The Finance Minister also proposed a scheme to promote the manufacturing of electronics and semiconductor packaging in India. On balance though, a few more announcements of measures to alleviate the financial stress of the telecom sector – the underlying platform for most digital innovation – would have been timely.