Electronic manufacturing sector will increase more than $200 billion in next 3 years: Ashwini Vaishnaw

Minister for electronics and information technology Ashwini Vaishnaw

Union Budget addresses challenges in electronics manufacturing by rationalising import duties on components, said Minister for Electronics and Information Technology Ashwini Vaishnaw on February 1.

In the Budget unveiled by finance minister Nirmala Sitharaman, the Centre cut basic customs duty (BCD) on information technology and electronics components, Lithium battery scrap, cobalt products, raw materials used in phone battery production and so on.

"In electronics manufacturing, the major problem was in customs. There were multiple slabs, a small addition to the product can change its classification. These have been rationalised," said Vaishnaw to media persons.

"Secondly, there were problems regarding warehousing capabilities. These were very important requirements for the electronics ecosystem. These complexities have been clearly addressed in the FM's speech," he added.

Vaishnaw said that in the next 3-4 years, electronic manufacturing which is currently at $115 billion, will double. Secondly, he said, employment in the industry which is currently at 25 lakh that too will double in the next 3-4 years.

During the Budget, Sitharaman also announced that the Centre will establish a centre of excellence in AI for the education sector.

"The AI CoE in education will be an integral part of the education sector. The money allocated Rs 500 crore is part of the IndiaAI mission," Vaishnaw said.

In the Budget, the government allocated Rs 2,000 crore for the IndiaAI Mission. Under the mission, approved by the Cabinet in 2024, the government intends to establish AI curation units within central ministries, set up 80 IndiaAI Labs nationwide, support 25 deep-tech startups, and fund 3 industry-driven projects.

"AI information units will work on curating non-personal datasets, such as passport data and so . All sectors including Centre, private and States will work together on this," Vaishnaw said.