The Union Budget 2024–25 has set ambitious targets for the current fiscal year, ranging from lowering tariffs on mobile phone components to steps taken to strengthen the nation's space industry. The administration also wants to increase jobs and postsecondary education. Following the Tuesday presentation of the Union Budget 2024–25, Finance Minister Nirmala Sitharaman made a number of significant announcements pertaining to technology. The impact of the Union Budget 2024–2025 on the future of technology is covered in this article.

How will the Union Budget 2024–25 impact The Future of Technology?

Mobile phones

One of the Union Budget 2024–25's most important statements affecting the technology industry is the decrease in customs taxes on cell phones and the parts that go with them. The goal of the 15% reduction in basic customs tax (BCD) on mobile phones is to lower the cost of these gadgets for customers. Furthermore, the BCD has been lowered to 15% on mobile chargers and printed circuit board assemblies (PCBAs). This action is anticipated to reduce the total cost of producing mobile phones, which could result in lower retail pricing and better accessibility for consumers.

Mobile phones, chargers, and printed circuit board assemblies (PCBAs) had their duties cut from twenty percent to fifteen percent. Additionally, inputs for connectors used in transistors have been fully excluded. Lithium, copper, cobalt, and rare earth metals—some of which are utilised in the production of telecom equipment—have also had their duties reduced or eliminated.

Employment and EPFO

A total of Rs.1.07 lakh crore was allocated for new hires in the organised sector through three new initiatives announced by Union Finance Minister Nirmala Sitharaman on Tuesday under the Employee Provident Fund Organisation (EPFO). A direct benefit transfer of Rs. 15,000 is introduced in the Union Budget for 2024–2025 for the newly hired workers in the Employees' Provident Fund Organisation (EPFO). Furthermore, for recruiting new employees during their first two years of employment, the government will compensate businesses up to Rs. 3,000 per employee per month. Top companies hiring interns would receive a one-time aid of Rs. 6,000 and a "internship allowance" of Rs. 5,000 as additional incentives for internships. The purpose of this program is to increase job possibilities and motivate businesses to spend money on staff development.

Solar Technology

In contrast to the revised expectations of Rs 7,848 crore for the Budget 2023–2024, the government allotted Rs 19,100 crore to the Ministry of New and Renewable Energy in the Union Budget 2024 with the goal of further boosting the renewable sector. In an impactful move, Finance Minister Nirmala Sitharaman has introduced the PM Surya Ghar Muft Bijli Yojana in the Union Budget. This newly launched program aims to empower 1 crore households with rooftop solar technology, providing up to 300 units of electricity per month. This project seeks to lower family electricity bills, helping India move towards a more self-sufficient and sustainable energy future.

Telecom Equipment

A notable adjustment to the Union Budget made by the Finance Minister is the rise in customs duty from 10% to 15% on printed circuit board assemblies (PCBAs) used in telecom equipment. It has suggested allotting about ₹1.29 lakh crore for public sector enterprises and telecom projects under the Telecom Ministry. "In the budget estimate (BE) 2024–25, the total net allocation for this demand is ₹1,28,876.67 crore (₹1,11,876.67 crore plus ₹17,000 crore). The government's goal of supporting local manufacturing and lowering dependency on imported components is reflected through this shift. This plan to raise a tax on PCBA is intended to encourage domestic manufacturing and assembly of telecom equipment, which might accelerate the expansion of the telecom industry and further India's 'Make in India' campaign.

Space Development

By creating a Rs. 1,000 crore venture capital fund, the government is making a major move to support India's space technology industry. A 1,000 crore fund was launched by Finance Minister Nirmala Sitharaman on Tuesday to promote space technology development. Riding high after the Chandrayaan-3 mission's success, Finance Minister Nirmala Sitharaman announced a Rs.1,000 crore fund to support the advancement of space technology on Tuesday. With the ambitious objective of multiplying the space economy in ten years, this program seeks to support the development of India's growing space technology sector. This fund is intended to have a  positive impact on Indian companies, including several startups in the space technology sector, encouraging innovation and promoting improvements in the nation's space capabilities.

Education Loans

The country's workforce, education, and skill-building would get Rs 1.48 lakh crore from the Union Budget for 2024–2025. Union Finance Minister Nirmala Sitharaman said on Tuesday that the government would finance loans up to Rs 10 lakh for higher education at domestic institutions. The government will provide students attending domestic colleges with education loans up to Rs. 10 lakh. Additionally, e-vouchers for loans up to Rs. 10 lakh annually would be made available under the updated Model Skill Loan Scheme. By helping 1 lakh students nationwide, this updated program seeks to increase access to higher education and make it more affordable for a significant number of ambitious students.