Budget Expectations 2021 – NXP Semiconductors

Quote from Sanjay Gupta, Vice President and India Country Manager, NXP Semiconductors

Stating his expectations from the Budget 2021, Sanjay Gupta, Vice President and India Country Manager, NXP Semiconductors, said, “The Government of India has been planning to boost domestic manufacturing and cut down on import bills with the production-linked scheme (PLI) along with scheme for promotion of manufacturing of electronic components and semiconductors (SPECS). We expect the Budget 2021 to provide further push to ‘Make in India’ initiative through incentives on export duty and take it to the next orbit of ‘Design in India’. We expect the Govt to launch some disruptive game-changing schemes to give strong push to semiconductors Fabless design & electronic Startup ecosystem in the country. This will improve the innovation and R&D sector in the country and propel the country towards becoming a global hub in electronics and semiconductors segment. The government should also consider introducing a detailed framework for registration and operation along with some tax related relaxations of electronic manufacturers as well as R&D.

India has started its electric vehicle (EV) journey and we are hopeful that the budget would provide further impetus to the sector. We are expecting this budget to provide financial benefits for EVs to support better charging infrastructure and innovation related to battery technologies. We also expect the government to incentivize the adoption of electric vehicles along with manufacturing of EV-related components. India is at the cusp of rolling out 5G which will prove to be a game changer in the telecom sector. We are positive that this budget will aim to promote the 5G ecosystem in the country by providing investment incentives to companies, relaxing tax and regulatory fee on 5G acquisition and cutting down spectrum charges and other levies.”

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