Budget 2021: Fertiliser, electronics manufacturing sectors to get major boost

Sources said the complete blueprint of DBT is ready, which was discussed in the Prime Minister’s Office (PMO). As announced earlier by the Finance Ministry, a subsidy payment of Rs 65,000 crore is possible, which will be on top of the budgeted Rs 71,309 crore for the current business year. Combined, the total subsidy allocated for 2020-21 will be around Rs 1.36 lakh crore, which is more than the total subsidy required for the current fiscal.

The subsidy requirement for 2020-21 was pegged at around Rs 80,000 crore. Adding the Rs 48,000 crore subsidy dues from last year, the total requirement would be around Rs 1.28 lakh crore. Thus, the enhanced allocation is expected to wipe out all outstanding dues of the industry.

In the Budget, the government is also planning to provide a major boost to the electronics and hardware sector. In a bid to enhance the domestic manufacturing of electronics goods like laptops, tablets, smartphones, and smartwatches, the government may bring a separate scheme to infuse Rs 10,000 crore in the sector.

Laptop and tablet manufacturers may get special incentives. There will also be incentives for the manufacturing of printed circuit boards, smartwatches, and air buds.

Earlier, the government had launched three schemes to boost electronics manufacturing in the country at a cost of Rs 50,000 crore. Foxconn, Pegatron and Wistron, Samsung, Karbonn, Lava, and Dixon had participated in the previous scheme.