Accelerate the country’s rise to consumer tech’s ‘Make In India’ initiative

The 2023 budget will be the first “normal” budget for an economy that has weathered supply chain disruptions, global recession and inflation in the years since COVID-19. To reach an estimated 6.5-7% GDP growth in FY24, India will need to capitalize on the economic momentum. By 2035, she said, the country must pursue value-added growth if it wants to reach its goal of achieving a $10 trillion economy. Driven by research and innovation. Developing a robust research ecosystem can increase India’s intellectual capital, improve the lives of ordinary Indians and stimulate innovations that will have a long-term impact on the world. This year’s budget should therefore lay the groundwork for realizing this potential.

Promote research and innovation. For research and development (R&D) organizations, academia and business, the pandemic has provided an attractive opportunity to work together for shared purpose, synergy, collaboration and cooperation. To this point, basic and translational research has been funded in stages by the government. The country is experiencing a surge in scientific innovation coupled with a dynamic startup ecosystem.

However, for about a decade, India’s total research and development expenditure (GERD) as a percentage of GDP has remained constant at 0.7%, even lower than countries such as Brazil (1.16%) and South Africa (0.83%). GERD should be raised to his 2% of GDP if India is to further develop its current scientific and technological progress. The Science, Technology and Innovation Policy (STIP) 2020 goal was to increase private sector funding for GERD by 50% over five years. To do this, companies are allowed to contribute to publicly funded universities, incubators, and research institutions in the fields of science, technology, engineering, and medicine through corporate social responsibility (CSR) programs. It has been. Perhaps CSR funding should only be used to support original IP-led research that meets an unmet need.

Prioritize defense research and development. In order to continue local production in the state indefinitely, cutting-edge technology independence must be a major area of ​​focus. Going independent entails expanding internal R&D capabilities and budget funding, manufacturing complete platforms for defense, and more. In addition, the weighted deduction for R&D expenses and tax incentives for industry participants to engage in technology transfer (ToT) have proven to be key forces behind the development of the domestic manufacturing ecosystem. may be

The Production Linked Incentive (PLI) scheme will initially launch with an investment of Rs 1.97 crore (approximately US$24.02 billion) in 13 industries and will be expanded to include the production of drones and drone parts in September 2021. Expanded. Similar schemes should be established for defense equipment manufacturing, as PLI schemes can facilitate domestic production and contribute significantly to the development of the sector’s small and medium enterprise (MSME) ecosystem.

Focus on digital infrastructure and skills. The 2023 budget should give equal emphasis to the government’s efforts to develop digital skills and its engagement with the IT and technology sector. Investments are needed in human resource development and digital skills, including in schools and universities. And this by investing heavily in strengthening digital infrastructure and internet penetration in Tier 2 and Tier 3 cities, helping them emerge as the future center of technology and digital talent for the country. It can be achieved.

Consumer durables and electronics industry. Summer 2022 and 2021 saw healthy trends in the consumer electronics and durables industry. Most consumers stayed home, increasing demand for gadgets and household items. According to CRISIL research, the consumer durables industry surpassed pre-pandemic volumes in value last fiscal year and is expected to surpass it by another 3% this year. Revenue for the current financial year is expected to increase by 15-18% to Rs.10 lakh, driven by sales volume growth of 10-13%. The industry believes the government remains committed to adopting and implementing changes that lead to ‘ease of doing business’, and by actively promoting the ‘Make in India’ project, will make India a ‘ We are focusing on increasing investment to make “Atman Nirval”.

Electronic device manufacturing is one of the key pillars of both Make in India and Digital India. The center will focus on promoting semiconductor and electronics manufacturing with the aim of increasing India’s share in the $3 trillion global electronics industry. His $10 billion PLI program was previously launched by the Ministry of Electronics, Information and Communication (MeitY) to support domestic semiconductor and display manufacturing. By 2026, he expects local production of electronic hardware to total $300 billion and exports of $120 billion.

The National Policy on Electronics (NPE) 2019 aims to make India a powerhouse of electronics system design and manufacturing by enhancing national capacity to manufacture critical components such as chipsets and promoting an enabling environment for the sector. Another initiative intended to be positioned as to compete on the world stage.

India may have a positive attitude towards technology and “digital,” but as it aims to become a US$5 trillion economy, much more needs to be done to support its digital-first strategy. You need to do. The next federal budget for the current fiscal year, February 1, 2023, will focus on reducing inflationary pressures, but needs to be done to support development so more people can benefit. There are still measures to be taken. The power of digital.

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