Union Budget 2023: After FM reduces taxes, mobile phones to get cheaper

Union Budget 2023: FM Nirmala Sitharaman presented the Budget today in Parliament where she also announced changes that will impact the technology sector. In recent years, technology has played a crucial role in India's economic growth. While the Make in India initiative and cybersecurity have been getting all the attention, the Finance Minister Nirmala Sitharaman also had a couple of updates to share in relation to technology, in various fields such as agriculture, finance and others, as well as smartphones, tech components and prices. Despite the rising semiconductor shortage which is plaguing tech industry around the world, leading to increased prices, smartphones could get a reduction in prices thanks to relaxation in custom duty of mobile phone parts, according to FM Sitharaman.

In the Finance Minister’s speech, there were a number of critical announcements in the field of technology.

1. Relaxation of custom duty on mobile phone, TV parts

Relief to custom duty has been proposed on the import of certain mobile phone parts such as camera lenses, lithium-ion batteries. This has been mainly due to the growth of India’s mobile manufacturing unit from 5.8 crore units in 2014 to over 31 crore units in 2022.

2. 5G labs for application development

100 labs for developing applications using 5G services will be set up in engineering institutions to realize new range of opportunities, business models and employment. The labs will cover applications such as smart classrooms, precision farming, intelligent transport systems and healthcare applications.

3. Centers for Excellence of Artificial Intelligence

To promote development in the field of artificial intelligence, 3 Centers for Excellence of Artificial Intelligence will be set up in top institutions. Leading industry players will partner in conducting interdisciplinary research. It will galvanize an effective AI ecosystem and nurture quality human resources in the field.

Other notable technology-related announcements

1. The government will promote the habit of reading in the youth with the promotion of the National Digital Library for Youth. States will be encouraged to set up physical libraries at panchayat and ward levels and provide infrastructure for accessing the national digital library resources.

2. A Digital Epigraphy Museum will be set up to encourage the study and interpretation of ancient texts and inscriptions, especially among the youth.

3. Digital Public Infrastructure for Agriculture will be built as an open source for interoperable public good. It will enable inclusive farmer-centric solutions & help improve access to farm inputs, market intel, support for agriculture industry and startups.

4. Using DigiLocker and Aadhaar as foundational identity, a one-stop solution for reconciliation & updating of identity and address of individuals maintained by various government agencies, regulators and regulated entities will be established.

5. National Data Governance Policy will be enabled which will allow startups and academia to access anonymized data.