The previous year has not been very fruitful for the consumer durables industry. The increased inflation and interest rates clubbed with multiple price increases due to increase in input costs have constrained the purchasing power of the middle class that ultimately has resulted in postponement of purchase. Since 3 years the consumer durables industry growth has been FLAT and it is time that it gets the boost from the government that it rightly deserves.
In the coming financial year we expect the Interest rates to go down, steps towards which we can already see from the recent cuts in the bank rate, repo rates, CRR. This is definitely a positive sign.
Further to this, we are expecting the government to make certain important decisions keeping in mind the aspirations of the middle class which will benefit the customers and the industry as a whole.
- Excise Duty Relaxation/Sales Tax reduction for energy efficient products. This would promote manufacturing of energy efficient appliances in India which in turn will help the power deficit scenario of our country. It will also increase the preference of such products amongst the consumers due to lower price.
- Reverse in excise duty. Last year the excise duty was increased by 2 percent which led to a price increase in white goods, resulting in drop in demand. We expect a roll back of the 2 percent increase in excise duty that was implemented last year.