Budget supports continuous growth, eases customs duty to push electronics production: Vaishnaw

New Delhi, Feb 1 (PTI) Intact capital allocation and simplified customs duty in the Union Budget 2025 will boost infrastructure sector and electronics manufacturing ecosystem for long-term growth, IT Minister Ashwini Vaishnaw said on Saturday.

In an interview to PTI, Vaishnaw said the budget has met capital requirements for the development and at the same time provided a huge relief to the middle class with the announcement of no income tax for up to Rs 12 lakh annual income.

"It's a dream budget. On the one hand, the requirement for capital investment has been met, and on the other hand, a huge relief has been given to the middle classes with no income tax of up to Rs 12 lakh annual income. This budget will pave the way for our continuous growth because the capital investment is intact," Vaishnaw said.

Finance Minister Nirmala Sitharaman presented Union Budget 2025-26, envisaging an expenditure of Rs 50,65,345 crore, an increase of 7.4 per cent over the current fiscal.

The budget has proposed a total capital expenditure of Rs 11.22 lakh crore in the next fiscal and effective capital expenditure of Rs 15.48 lakh crore.

Vaishnaw said the budget took care of interest of farmers, youth, MSMEs, middle classes, manufacturing, deep tech, investment for science and technology, and still the fiscal deficit has been pegged lower at 4.4 per cent of the GDP.

Talking about the impact of the budget on electronics and IT, the minister said that the proposal simplifies custom duty structure, which will boost electronics manufacturing ecosystem and provide base for development of electronics components as well.

"We are manufacturing the finished products. Today, getting the component ecosystem into our country is very important. In today's budget, major announcements have been made in custom simplification, in terms of permanent establishment and warehousing facilities -- all those were required very urgently for our component ecosystem to grow in the economy," he said.

The minister said the budget provides a broad framework, and specific schemes to promote individual segments will be announced gradually.

"Today's budget announcements will be a very big boost in electronics manufacturing, whether it is mobile phones, laptops, servers, medical electronics, power electronics, audio equipment. All these things will get a very big push in this budget," Vaishnaw said.

He said that with electronic components getting developed in the country, the local value addition is also going to increase substantially in the finished products.

Vaishnaw said there has been record allocation made for Indian Railways for continuous growth of the sector.

"I thank the Prime Minister and Finance Minister for giving such a sustained allocation for Railways of Rs 2.52 lakh crore gross budgetary support. 100 Amrit Bharat, 50 Namo Bharat and 200 Vande Bharat -- both sleepers as well as chair car versions -- will be manufactured. 17,500 general coaches will be manufactured," Vaishnaw said.

He said that freight corridors will be completed, and electrification projects will also be completed in 2025-26.

"North East connectivity is progressing well. Kashmir connectivity is about to be inaugurated. The entire focus on getting affordable services is phenomenal. Such a sustained focus on railways means that the cost of logistics in the country is coming down, the carbon dioxide emissions are coming down," Vaishnaw said.

He said that based on passengers' feedback, Indian railways will add many more services during the year. PTI PRS PRS BAL BAL

Source: PTI