On Saturday, Finance Minister Nirmala Sitharaman unveiled a series of initiatives and programs as part of the Union Budget 2025. This second budget of the NDA government’s third term aims to enhance broadband connectivity for government schools and promote the manufacturing of solar cells, grid-scale batteries, and other products. Additionally, the budget will offer insurance coverage to approximately 1 crore gig workers, raise loan limits under the PM Swanidhi scheme, and introduce a new Rs. 30,000 credit card linked to the NPCI’s unified payments interface (UPI).
According to Prabhu Ram, VP of the Industry Research Group at CyberMedia Research, “The government’s adjustment of Basic Customs Duty (BCD) will support domestic manufacturing and help us move towards Prime Minister Narendra Modi’s ambitious goal of $500 billion (around Rs. 43,32,500 crore) in electronics manufacturing. The increase in BCD on interactive flat panel displays from 10 percent to 20 percent, alongside the reduction on open cell and other LCD/LED components to 5 percent, represents a strategic policy shift that will significantly benefit domestic manufacturing leaders such as Dixon.”
Counterpoint Research Director Tarun Pathak remarked to Gadgets 360, “The Union Budget 2025 is promising for the industry, particularly for the consumer electronics manufacturing sector. The new reductions in BCD for critical components indicate that the localization of parts like batteries and displays will likely see an uptick.”
Key Technology-Related Announcements from the Union Budget 2025
- The establishment of five National Centres of Excellence for Skilling has been announced, along with a new Centre of Excellence for AI in Education, which will receive an allocation of Rs. 500 crore. Additionally, new infrastructure is set to be added to IITs established after 2014, with plans to increase student capacity by 6,500 seats at these newer institutes.
- Broadband connectivity expansion is set for all secondary schools and primary health centers nationwide under the Bharat Net initiative. In conjunction, over 50,000 Atal Thinking Laboratories (ATL) will be established in government-run schools over the next five years.
- The government is considering a new Deeptech fund-of-funds aimed at enhancing research and development. Moreover, data from the PM Gati Shakti initiative will be made accessible to the private sector, and a Bharat Trade Net platform will be created to streamline international trade. Plans for overhauling India Post to strengthen its logistics capabilities have also been announced.
- The Make in India initiative is being broadened to include a new manufacturing mission, designed to foster an ecosystem for local production of components such as grid-scale batteries, solar photovoltaic (PV) cells, and electrolysers. The government has reduced basic customs duty on open cells and carrier-grade Ethernet switches, while increasing BCD on flat panel displays to 20 percent.
- Over 1 crore gig workers will qualify for government-sponsored insurance, along with e-Shram registration and an identity card. The finance minister also revealed a new UPI-linked credit card with a Rs. 30,000 limit, as well as increased loan limits for the PM Swanidhi Scheme.
