Apex industry body Indian Electrical & Electronics Manufacturers’ Association (IEEMA) has welcomed the Union Budget 2024, presented by Union finance minister Ms Nirmala Sitharaman on July 23, 2024.
Expressing their reactions on the Budget, IEEMA officials appreciated the continued focus on clean energy initiatives, and favourably viewed the announcements pertaining to up-skilling of labour force, boosting the manufacturing sector and lending support to micro, small and medium enterprises.
Continued focus on clean energy
According to Hamza Arsiwala, President, IEEMA, “We welcome the budget announced by Finance Minister Nirmala Sitharaman today. I am glad to highlight that out of the nine priority areas identified by the government energy security, infrastructure, innovation, employment & skilling, R&D and manufacturing are among the government’s key focus areas. The emphasis is on building a roadmap for Viksit Bharat by 2047 by focusing on job creation, skill upgradation programs and employment-linked incentives on the one hand and creating an environment of boosting manufacturing, infrastructure and MSME sectors.
The government has continued its focus on clean energy initiative aligned with the target of achieving net zero with PM Surya Ghar Muft Bijli Yojna, the FM aims to encourage the scheme into the future. The FM also announced a viability gap funding for investments in infrastructure. The FM announced a plan for a policy on appropriate energy transition pathways focusing on employment, growth and environmental sustainability and IEEMA is happy to collaborate and work with the government in developing this policy. Announcements linked with duty exemptions of 25 minerals and metals is a welcome step and will further strengthen the manufacturing of electrical and renewable equipment. Giving a boost to the startup ecosystem the FM announced the abolishment of Angel Tax across all sectors and segments. This will boost employment, and investment and encourage entrepreneurial spirit to steer the country towards the goal of achieving Viksit Bharat.”
Smooth grid-integration of renewables
Welcoming the Union Budget announcements that could form the foundation of making India “Viksit Bharat” by 2047, Sunil Singhvi, President Elect, IEEMA, noted, “Energy security is one of the government’s important priorities highlighted in today’s budget and focuses on making energy available, accessible, and affordable for all the people of the country. As the country faces growing energy demands, the FM introduced a policy for promoting pumped storage projects aimed at enhancing electricity storage and facilitate the smooth integration of the growing share of renewable energy. The government’s private sector partnership aims to leverage expertise, innovation, and investment to accelerate small modular nuclear reactor development and position India as a global nuclear energy leader. Funding in R&D will advance Bharat’s small modular reactors to meet India’s energy needs, enhancing energy security with reliable, sustainable power. The Union Budget announced the support scheme for setting up 800MW coal based advanced ultra super critical technology. Apart from central government thrust the budget also has provisioned for state by announcing investment incentives linked with infrastructure, roads and airports across Bihar and Andhra Pradesh. 12 industrial parks across various states under the National Industrial Corridor Development Program will also be sanctioned in phased manner. These states will open up a gateway of opportunity for manufacturing sector and fuel growth.”
Boost to manufacturing sector
“The government today announced significant measures for manufacturing and MSME sector. In her speech today, the Finance Minister highlighted a package covering financial, and technological support to MSMEs and labour-intensive manufacturing sectors to spur their growth. The revision of the Mudra Loan limit to Rs.20 lakh, the opening of 24 new SIDBI branches in MSME clusters and e-commerce export hubs for MSMEs and traditional artisans are some of the measures that are expected to boost the sector. The government also proposes energy audit of micro and small industries in 60 clusters for shifting them to clean energy forms. The government’s plan of expanding the Pradhan Mantri Awas Yojana (PMAY) by making provision for 3 crore more houses under the scheme and an announcement of Rs.2.2 lakh crore push towards making housing more affordable will fuel the demand for electrical and electronic equipment and components. The FM announced that a roadmap will be created for moving the ‘hard to abate’ industries from ‘energy efficiency’ targets to ’emission targets’, which will encourage investments in cleaner technologies such as electrification in place of fossil fuel-based processes. The government announced appropriate regulations for transition of these industries from the current “Perform, Achieve and Trade” mode to “Indian Carbon Market” mode. The FM has also announced that 25 mineral and metals including lithium, copper, cobalt, nickel and other rare earth metals critical to nuclear and RE, space technology are fully exempt from custom duties, this comes as a booster shot for the manufacturing players,” said Vikram Gandotra, Vice President, IEEMA.
Sustainable growth through cutting-edge technologies
Recognizing that the Union Budget 2024 could foster growth and transformation in key sector, Charu Mathur, Director General, IEEMA, noted, “IEEMA welcomes the Union Budget 2024-25 announced today, recognizing the government’s commitment to fostering growth and transformation in key sectors. The budget, unveiled today, focuses on 9 key areas that are crucial for India’s journey towards becoming a developed nation. The Union Budget for 2024-2025 outlines a clear path for the advancement of India’s energy sector, focusing on sustainable growth via cutting-edge renewable and nuclear technologies. Finance Minister Nirmala Sitharaman’s strategic plans underscore a dedication to environmental sustainability while also fostering economic growth. This strategy is expected to bolster energy security and drive extensive economic gains through advanced industrial progress. With focus on the clean energy and aim of achieving Atmanirbhar Bharat and Make in India initiative, we commend governments efforts towards promoting domestic manufacturing of solar glass and tinned copper interconnect. Custom duty exemptions on minerals and metals used in key component manufacturing will boost growth of electrical and component manufacturing. Continuation of nil duty import for next two years for high grade CRGO steel which is critical component of power transformers is a welcome move. Overall, there is a big push for renewable energy sector and a promise of new generation of reforms towards greater development.”
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