Budget Reaction: Rajeev Jain, Chief Financial Officer, Intex Technologies

Rajeev Jain

The Budget is focused towards increasing the personal disposable income in rural India and critical areas like education, health and infrastructure. This will further enhance the Make in India initiative of the Government in the critical electronic industry particularly mobile, which is the key product of all the Government’s initiatives.

The Budget will spur the demand side of the economy by proposing various rural income enhancement schemes and reducing various pain areas of farmers. This will, in turn, rejuvenate the overall economic growth and spur demand for consumer electronics items like mobile phones and LED TVs thereby fuelling domestic businesses.

Intex has been known to cater to the developing Tier 2 and 3 cities since inception with its affordable consumer products and with the various rural personal disposable income enhancement schemes introduced in the budget, it will give a fillip to the sale and demand of electronic products.

The budget has further strengthened the Digital India initiative with the boost in increasing allocation for digital education through classrooms and continue with the further broadband penetration in the country.

I welcome government’s move to walk the talk on “Make in India” by increasing customs duty (to 20%) on the imported mobile phones and in PCBAs of accessories like batteries & chargers (15%), which will prove to be the big boost for localisation and setting up of a domestic component ecosystem. This is a big thumb up to domestic players like Intex, which have been developing domestic capacities since long in electronics manufacturing.

The Budget has also increased duty on certain LED TV components such as LED panels (15%), which will push for developing capacities for local manufacturing of components. Such move encourages Intex that has been working on enhancing domestic capacities and has recently begun its own Open Cell Manufacturing or LED Panel manufacturing to improve quality control and produce affordable quality products. It will encourage localization in India with domestic manufacturers now implementing plans for local production capacity.

Overall, the budget is development oriented fulfilling the ease of doing business and ease of living for citizens.”

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