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Budget 2021: Infrastructure, farm sector & jobs focus to put FMCG in fast lane
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Last Updated: Feb 02, 2021, 08:28 AM IST
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Synopsis
Finance minister Nirmala Sitharaman increased spending on rural infrastructure development by 34% to ₹40,000 crore and doubled micro-irrigation corpus to ₹10,000 crore among other measures that could help create jobs and boost farm incomes in the hinterland .
Agencies
Prices of some consumer electronics products such as refrigerators, air-conditioners and printers could increase marginally due to hike in customs duty on their raw materials.
Related
Increased spending on rural infrastructure, sops for the farm sector and a focus on job creation are expected to help spur demand for daily household products and groceries a market that has already recovered strongly during the last quarter.
Mobile phone, durables prices set to increase
February 02, 2021
Hike in customs duty on imported parts likely to push prices up
While the increase in customs duty on mobile phone parts and electronics goods announced in Budget will give a fillip to domestic manufacturing, it is also likely push up handset and durables prices, say manufacturers.
“For greater domestic value addition, we are withdrawing a few exemptions on parts of chargers and sub-parts of mobiles. Further, some parts of mobiles will move from ‘nil’ rate to a moderate 2.5 per cent,” Finance Minister Nirmala Sitharaman said.
Promote manufacturing
“The customs duty revision for the compressors, used in refrigeration and air conditioning, from 12.5 per ent to 15 per cent will promote indigenous manufacturing of the same and is in line with making India self-reliant in the long run. There have been increases in import duties on motors and PCBs as well. These are good for the medium and long-term but will
Govt allocates Rs 14,200 cr for telecom infra roll out in 2021-22
New Delhi: The government on Monday allocated Rs 14,200 crore for telecom infrastructure that entails completion of optical fibre cable-based network for Defence services, rolling out broadband in 2.2 lakh panchayats and improving mobile services in the North East.
The government had approved Rs 24,664 crore for an advanced communications network for defence services in lieu of their vacating spectrum for mobile telephony in May 2018. The project was to be completed within 24 months.
According to the budget document, the finance ministry has earmarked an outlay of Rs 5,200 crore to rollout the entire optical fibre cable (OFC) required for setting up the Defence communications network, issue purchase order for all equipment components for the entire project to commission nationwide dedicated full-fledged communication network.
Express News Service
NEW DELHI: Finance Minister Nirmala Sitharaman on Monday proposed an increase in customs duty on a range of items, including mobile phone parts and compressor, in her Union Budget 2021 speech.
Industry body Consumer Electronics and Appliances Manufacturers Association (CEAMA) President Kamal Nandi said, The customs duty revision for the compressors, used in refrigeration and air conditioning, from 12.5 per cent to 15 per cent will promote indigenous manufacturing of the same and is in line with making India self-reliant in the long run. There have been increases in import duties on motors and PCBs as well .
He, however, added, these are good for the medium and long term but will impact price adversely in short term due to insufficient output capacities. All Compressors used in domestic manufacturing of ACs and refrigerators are imported from overseas. Hence a customs duty hike is likely to impact prices of the finished products.