Cabinet Approves Rs 7,350 Crore Plan To Boost IT Product Exports

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Cabinet Approves Rs 7,350 Crore Plan To Boost IT Product Exports

Finance Minister Nirmala Sitharaman for the first time presented the Union budget digitally.

The cabinet on Wednesday approved Rs 7,350 crore plan for boosting the local manufacturing and export of IT products such as laptops, tablets, personal computers and servers, the country’s technology minister said.

The production-linked incentive (PLI) plan, which provides manufacturers cash-backs, will help India export IT goods worth Rs 2.45 lakh crore, technology minister Ravi Shankar Prasad told a news conference.

On February 1, Finance Minister Nirmala Sitharaman  for the first time presented the Union budget digitally. Ms Sitharaman used a tablet to read out the budget announcements instead of the traditional ‘Bahi Khaata’. This significant change in technology adoption indicates that technology has now become an integral part of our lives, due to the coronavirus pandemic.  

In Budget 2021, the government proposed to construct a top-notch FinTech hub at GIFT City in Gandhinagar, Gujarat. In her speech, she said India is now becoming capable of exporting smartphones and other equipment to international markets. The domestic manufacturing of electronic appliances has also grown exponentially.

In addition, the government might increase 2.5 per cent duty on the “some parts” of the mobile manufacturing process. However, it is unclear to which parts the new tax will be imposed. This will eventually force manufacturers to set up local manufacturing units of smartphone components in India.

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Last year, the government introduced PLI scheme to boost manufacturing in the country. This also was the reason for the Renaissance of Indian smartphone brands such as Micromax and Lava.

Additionally, the finance minister also indicated that the 2021 Census will be held digitally for the first time in India. She also emphasised the adoption of technology in various government bodies to make them available for all and technically sound.

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