Budget 2021: Finance Minister Nirmala Sitharaman on Monday presented the Union Budget 2021 in the Parliament. In a bid to promote domestic electronic manufacturing, Indian government has decided to remove exemptions on parts of chargers and mobiles. According to FM Sitharaman, some parts of mobile phones will also move from NIL custom duty to a Moderate custom duty of 2.5 per cent.
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“Withdrawing exemptions on parts of chargers and mobile phones to boost local manufacturing of smartphones. Domestic electronic manufacturing has grown rapidly. For greater domestic value addition, we’re withdrawing a few exemptions on part of chargers & sub-parts of mobiles. Further some parts of mobiles will move from nil rate to a moderate 2.5%,” Sitharaman said while presenting the Union Budget 2021.
Commenting on the announcment, Faisal Kawoosa, Founder and Chief Analyst, techARC told Zee Business: “I look at it with all positivity. This sector was so far seen as one looking for sobs and subsidies. Now government has faith in this sector that it can contribute in revenue generation for the county. That indeed indicates signs of maturing of the sector.”
Meanwhile, during the Union Budget 2021, Sitharaman said that government will allocate 2.2 trillion rupees ($30.20 billion) for healthcare in 2021/22. This is in order to revive an economy that plunged into deepest recorded slump amid the coronavirus pandemic.
The government will launch a new federal health scheme with an outlay of around 641 billion Indian rupees ($8.80 billion) over the next six years, she told parliament kicking off her budget speech.
India, which has the world`s second highest coronavirus caseload after the United States, and currently spends about 1% of gross domestic product on health, among the lowest for any major economy.