The Union Budget 2011 is encouraging. The formation of National
Innovation Council and State Innovation Councils to prepare a
roadmap for innovations in India is a welcome move. The expected
government funding through these councils will provide an impetus
to Research and Development in the semiconductor industry.
The Finance Minister also announced the impending launch of
National Mission for hybrid and electric vehicles in collaboration
with all stakeholders which will create long term benefits for the
semiconductor industry.
The basic customs duty on solar lanterns has been reduced from 10
percent to 5 percent and that for products used in the manufacture
of solar modules or cells is completely removed. This is an
important move by the Government of India in laying the foundation
of a green initiative through solar which will again provide the
much needed fillip to the semiconductor industry.
The tax reform in the budget will bring the next wave of growth
for India and will help the economy grow and prosper.
The writer is Vice President and Country Manager,
Freescale Semiconductor India.