Union Budget 2021: Technology Sector In Focus

This was the first time when a finance minister presents the budget digitally. Nirmala 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 more integrated with our lives, thanks to the coronavirus pandemic.  

To give you a simplified view of the budget, we have curated excerpts with a special focus on the technology world.

In Budget 2021, the government proposes to construct a top-notch Fin-Tech hub at GIFT City in Gandhinagar, Gujrat. Moreover, Finance Minister also said that the government will launch National Hydrogen Energy Mission to generate hydrogen from green power sources. 

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. 

Also, the government might increase 2.5 percent 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. 

Last year, the government introduced PLI Scheme (Production Linked Incentive) 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 to be held digitally for the first time in India. She also stressed on adoption of technology in various government bodies to make them available for all and technically sound.