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 per cent to 5 per cent and that for products used in the manufacture of solar modules/ 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.
