Post Budget 2017 Reactions by Mobile Industry Experts

by February 2, 2017 0 comments

Post budget 2017, mobile phone going to be expensive and this impact could be huge for the industry. After demonetization, we all have seen a huge dip in the sale and now when our union finance minister Arun Jaitley presented the budget 2017 -18; increasing prices of the mobile phone, the smartphone and other manufacturers would get impacted lots. We have gathered all the reactions from mobile industry experts at one place.

Here are some of the reactions; have a look…

Peter Chang, Region Head – South Asia & Country Manager for ASUS India
“The budget gave the smartphone industry a lot to look forward to in the coming year. Government’s thrust on digitization through its push on Aadhaar-enabled payments will provide impetus to the demand of mobile phones in the country. The BHIM app has already been adopted by 125 lakh people and government’s plans to introduce two new schemes to promote its use will make the concept of a cashless society and digital currency, a reality. In addition to this, proposed extension of the OFC network to 1,50,000 gram panchayats for high speed broadband connectivity and rollout of 4G in the country will create a more digitally inclusive society. The budget was also conducive to promoting domestic manufacturing of electronics. With a provision of INR 745 crores in 2017-18 in incentive schemes like M-SIPS and EDF, manufacturing of smartphones in India should see a boost. We now look forward to the successful rollout of GST this year. Besides achieving standardization of taxation levels and making interstate movement of goods easier, it should also help sellers achieve similar selling prices. This coupled with all the other initiatives will enable us to bring more people under the digital umbrella.”

Arvind R Vohra, Country CEO & MD, Gionee India

We are positive, that the Government’s increased allocation and incentives in schemes like M-SIPS and EDF will provide the necessary push to the mobile and internet manufacturing economy . Also the allocation of INR 10,000 crore in BharatNet provides the much needed boost for the penetration of Digital India into the rural segment, and for strengthening the consumptions of smartphones.


Rajesh Agarwal, Co-Founder, Micromax Informatics
This budget was intended to bring in a lot of optimism and I think the government has clearly defined its intention to revive the rural economy with spending on key areas demarcated, including the skill based education, healthcare, housing and infrastructure development which will definitely generate income in the rural areas.

The focus on digitisation and reforms on restricting cash spending is an important step towards making India a digital economy. Smartphones play a very crucial role in enabling digital payments and Micromax feels this they will be able to facilitate and contribute to this strategic national initiative in a big way through their wide range of phones and the customer reach they enjoy through their distribution network. . Also we feel that there will be a specific focus on the low and mid-price smartphones capturing a fair share of the market.

I think there were some corrective measures that were announced such as tax sops for SMEs and MSMEs, which will be a welcome gestures for that segment. Boosting more demand and upbringing rural economy will further give rise to public spending which will show results in the long run.

I think that the Rs. 10 Lakh crore credit announced for farmers is the probably the highest amount which has been provisioned in this budget and some of the other funds announced will benefit the farmers further and we are hopeful that it create rural jobs as well. There was a bold decision on electoral funding and that is commendable. We feel that the infrastructure spending including airports, railways and highways will generate employment and boost spending.

The government has also acknowledged the need to bring down lending rates to ensure cheaper funds for both industry as well as consumers and we hope GST will be able to address that. It is heartening is that the government has announced multiple measures which can improve local manufacturing and create a better component ecosystem for mobile handset makers. The allocation of Rs 745 crore is a welcome move which will provide impetus to local component manufacturing in the electronics sector.

“Make in India” is a great opportunity given India has attracted huge investments in local manufacturing lately not only benefitting the economic growth but also creating increased employment. The investment of Rs. 10,000 crore towards that aim will definitely be beneficial to further grow local manufacturing. At Micromax we are committed to support the Make in India initiative and invest accordingly.

With focus on growth, it is a progressive budget and is a stepping stone to India’s growth story. The delivery however will be contingent on effective implementation of these policies.”


Vivek Zhang, CMO, Vivo India
“The move by the government to impose 2% customs duty on import of printed circuit boards for manufacture of mobile phones might initially result in a hike in the cost of smartphones. However, in the long run it will give a boost to governments’ efforts in pushing the Make in India campaign. Over the course of time, we can expect complete manufacturing of smartphones in the country by major players in India.

Vivo, a global brand has its own manufacturing plant in India and is already in line with PM Modi’s Make in India campaign.”

Mr. Manish Sharma, President & CEO, Panasonic India & South Asia, and Executive Officer, Panasonic Corporation.

The Union Budget 2017 will have a long term impact, it needs to be analyzed further when it comes to the appliances and consumer electronics industry. This budget, a lot of impetus has gone to rural economy and allocation on infrastructure by the honorable finance minister. From a consumer electronic company point of view we were expecting direction on the upliftment in supply chain and logistics in India. The budget allocated towards MSIPs and EPF looks progressive and will surely reduce dependency on imports in the industry.

We look forward to the next draft of GST to come forward, however the government’s move on imposing a 2% special additional duty on populated printed circuit boards (PCB) used for mobile phones imported into the country, will provide adequate protection to the domestic industry and give the necessary impetus to Make-in-India under the GST regime.

Mr. Sanjeev Bhatia, CEO of Zopo Mobile India and Managing Director of Adcom
“The budget 2017 is extremely positive and people friendly. Reduction in direct taxes for SMEs & low income individuals is definitely going to benefit the masses and will really impact the Indian economy in a huge way. The GST is proposed to implement on July 1st, so indirect taxes such as, excise, customs, service tax have not been touched. Manufacturing allocation is good initiative to start off. With such initiatives India can grow on the charts of GDP.

In the direction of making India a Digital nation a needful decision was made, with the focus rightly on digital India the budget also gave boost to telecom and manufacturing sector through Digital India. Modernization is good for any nation, for a successful and powerful nation fast growth can only be reached with the help of technology. Those portions of India that are deprived from the fruits of technology will now be able to enjoy it.

Government’s mission to connect 1,50,000 gram panchayats with hotspots and digitization will increase the use of technology and will create a friendly environment for digital payment system. No doubt Smartphone will play a crucial role in strengthening Indian economy. In today’s world technology and smartphones go hand in hand this step will lead to more demand of smartphones and will create the a wide spectrum for smartphones companies to compete for and to deliver.”


Mr. Pankaj Anand, CEO, Jivi Mobiles
“We were hoping to get some relaxation in taxes for low end smart phones in lieu of promoting smart devises to the masses which would have enabled them for digital banking and also some packages to support mobile manufacturing in India, on the contrary increase in duty on PCB will certainly increase the prices of mobile phones”



Mr Shrutam Desai, CO-Founder,

However, there are no direct announcements made with respect to e-commerce sector, i will call it a muted budget but the expectations were also on lower side as we are expecting major reforms only during the GST announcements and subsequent rollout. there are two notable announcements made which will eventually help e-commerce companies (esp those who are in nascent stage) – 01) reduced income tax for people whose income is less than 5L – this will increase the net income of the salaried class and may help to increase the consumption. 02) reduced corporate tax from 30% to 25% – with annual turnover of less than 50 Crore

However, we should also note that ample focus have been placed on improving infrastructure – which eventually bring down the logistic expenses for the e-commerce companies. the result may not be visible in short period but it is govt’s message that they are prioritising the transportation sector.


Mr. Sudhir Kumar, CEO, itel Mobile India
“The Union Budget-2017 carries significant prospects for manufacturing brands. The FM has included provisions meant to boost electronic manufacturing by promoting MSIPS and EDF. Such policies would further receive funds worth 745 crores in FY18, hence, promoting indigenous manufacturers and attracting innovation and technology prowess engineered by foreign countries. And while the manufacturing sector celebrates policy changes, we further appreciate the streamlined delivery of these products, via the GST bill. These announcements are further in sync with the overall emphasis on transitioning India into a digital economy, empowered with fast internet access, cyber-security and access to smartphones. It is heartening to see the union budget for FY18 support the right to progress by shifting the focus back on to rural economy and agriculture; which truly resonates with our brand proposition. The provisions put forth in the budget are going to improve the buying capacity, digital lifestyles and affluence of the rural India and we at itel, welcome these changes and look forward to the promising year ahead.”

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