Positive Budget for electronics industry; tax cut will also boost demand: Atul Lall, Dixon Tech
Atul Lall, VC & MD, Dixon Tech, says the Budget is positive for the electronics industry. They had sought simplifying the duty structure for IFPD, and that has been achieved. Lall believes this will greatly boost IFPD manufacturing. Additionally, they had requested the reduction or elimination of certain duties on mobile components from 2.5% to 0%, and that has also been accomplished. They have lowered the duty on inputs for open cells, and agreed to requests on the deregulation front, all of which is beneficial for companies like Dixon.
What is your take on the Budget?
Atul Lall: For the electronics industry, the Budget is positive. There were certain specific asks from the industry. One was on rationalisation of the duty structure for IFPD, and that has been done. What we asked for, thankfully, was addressed completely in the same format.
I think that is going to give a significant fillip to IFPD manufacturing. Then, we had asked for rationalisation or removal of certain duties on components for inputs for mobiles from 2.5% to 0%, and that has been done. They have also reduced the duty on inputs for open cells and that is positive for companies like Dixon because we are going to be setting up a display module plant. So, these are the positives.
On the regulatory front, there was always a sore point on the end-use certificates for IGCR components. That has been extended from six months to a year, and that is a positive. Monthly returns have been extended to quarterly returns. So, what the finance minister
