Union Budget 2021-22: TEMA welcomes new Manufacturing schemes of Mobile and Electronic equipment

Finance Minister Nirmala Sitharaman has presented the Union Budget 2021-22 in Parliament today. Telecom Equipment Manufacturers Association (TEMA) has praised Government on a reformative Budget aimed at economic growth and ease of living for Indian citizens.  The proposed new scheme and additional duty on mobile components will help Make in India for mobile phones and electronics.

Some of the provisions to ease out citizens, like no return to be filed for 75 years and above aged persons, reduction of time limit for reopening assessments to 3 years from 6 years, faceless dispute resolution panel, Increase of Tax audit limit from Rs 5 crore to Rs 10 crore, though looking small is a big initiative for ease of living.

Prof NK Goyal, Chairman Emeritus, TEMA welcomes the decision for additional duty of 2.5% on mobiles and parts of mobiles as part of such carefully conceived Phased Manufacturing Plans. As Government has announced PLI for mobiles and domestic manufacturing is picking up, this decision will help in Make in India by promoting domestic components.

TEMA also thanked Government for last week's restoration of the MEIS rate of 2% for mobile phones, which will give a big boost for exports of mobiles.

The Association has also welcomed the initiative to launch a new scheme to encourage the manufacturing of mobile phones, semiconductor packaging, and electronic equipment.

TEMA is also happy to see an increase in the MSME budget from Rs 7,572 crores to Rs 15,700 Crores, a big boost for the MSME sector and also enthused by the decision of Rs 50,000 Crores for the National Research Foundation for promoting research and development. TEMA believes that this includes the telecom and electronic sector also.