Pre Budget Quote By Mr. Kamal Nandi, President – CEAMA And Business Head & Executive Vice President – Godrej Appliances - GADGETS INNOVATIONS

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Friday, June 21, 2019

Pre Budget Quote By Mr. Kamal Nandi, President – CEAMA And Business Head & Executive Vice President – Godrej Appliances



The consumer electronics and appliance industry has witnessed low to no growth in the last three years. The penetration level for durables has traditionally been low in India and despite more than 5 decades, it stands at as low as ~30% for refrigerators (92% in China), ~13% for washing machines (88% in China) and 60% for televisions (95% in China). Revival of growth, therefore, is the biggest ask that industry has from the government.
                      
As an industry, we expect the government to reduce the customs duty on open cells from 5% to 0%, as presently there is no ecosystem for local manufacturing of Open Cell in the country. In fact CEAMA has submitted a plan for phased manufacturing of TVs and its subparts to the government in 2018 to encourage local and end to end manufacturing of Televisions in the country. Expedition in implementation of the PMP is the need of the hour.


We, also recommend implementing a phase manufacturing programme (PMP) for components of Air Conditioners as many of these key inputs – especially compressors – are mostly imported. Therefore, there is a significant need to promote indigenization of AC’s in the country. It will give a positive signal to potential investors as well as help in aiding the ‘Make in India’ initiative.  


Additionally, we urge the government to lower GST rates for key consumer products like air conditioners and TV above 32 inches (all sizes) as these products are the basic necessity of a household and not a luxury. Furthermore, reducing GST rates for TVs above 32 inches and air conditioner from 28 to 18% will give the much needed boost to the sector and will create more employment opportunities. The reduction will also make the product more affordable to the consumer.


Further, 5 star rated energy efficient products across categories should be brought to a lower slab to incentivize consumers to shift to more efficient products.


We are highly optimistic about the upcoming budget and expect it to usher in a balanced combination of reforms and regulations, which will, in turn, boost the ACE industry, contributing positively to India’s growth story.

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