Union Budget 2024-2025: Major Push for Space Economy, Technology Adoption and Digitalization

New Delhi:  In a landmark address today, Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman outlined a series of transformative measures aimed at accelerating the adoption of technology and enhancing digitalization across the Indian economy. Presenting the Union Budget for the fiscal year 2024-2025, Sitharaman highlighted the success of technology in driving productivity and reducing economic inequality over the past decade.

Strengthening Data Governance

The Finance Minister emphasized a robust strategy for data governance, collection, processing, and management. As part of this initiative, various sectoral databases—including those developed under the Digital India mission—will see increased utilization of advanced technology tools to improve data handling and accessibility.

Boosting Mobile Phone Production

With the Indian mobile phone industry experiencing a dramatic increase in both domestic production and exports over the past six years, the budget proposes a significant reduction in Customs duty. The new rate of 15 per cent will apply to mobile phones, mobile PCBA (Printed Circuit Board Assembly), and mobile chargers. This move aims to benefit consumers and support the continued growth of the industry.

Enhancing Domestic Electronics Manufacturing

To further bolster the domestic electronics sector, the budget proposes the removal of Customs duties on oxygen-free copper used in resistor manufacturing. Additionally, certain components necessary for the production of connectors will be exempt from Customs duties, enhancing value addition within the industry.

Incentivizing Telecom Equipment Production

In a bid to stimulate domestic manufacturing of telecommunication equipment, the budget plans to increase the Customs duty from 10 to 15 per cent on PCBA of specified telecom equipment. This measure is expected to support local manufacturers and foster growth in the telecom sector.

Advancing Digital Public Infrastructure (DPI) Applications

The Finance Minister unveiled plans to develop DPI applications on a population scale, focusing on areas such as credit, e-commerce, education, health, law and justice, logistics, MSME (Micro, Small, and Medium Enterprises), services delivery, and urban governance. These initiatives are aimed at driving productivity gains, creating business opportunities, and fostering innovation across various sectors.

Expanding the Space Economy

In a forward-looking move, the budget allocates Rs. 1,000 crore for the establishment of a venture capital fund dedicated to expanding the space economy. The goal is to quintuple the size of the space sector over the next decade, positioning India as a key player in this rapidly growing field.

Smt. Sitharaman’s announcements reflect a comprehensive strategy to harness technology for economic growth and digital inclusion, setting the stage for a more connected and efficient Indian economy.