By Avneet Singh Marwah
Union Budget 2019 India: Currently, the Indian market is going through a tough phase as the buying power is being affected. There was no spike in the television industry, despite Cricket world cup, and it saw a degrowth in the offline market in India. To find the growth rate again, the government should take numerous steps in Union Budget to improve the current market conditions in India. The government should reduce the custom duty, as there are no raw material manufacturers of display panels in India. Apart from that, there have been a large number of units that are coming under the FTA trade. More than Rs 2500crs import of TVs from past 1 UNDER FTA (Free Trade Agreement), where zero percent duty is giving a very tough time to the “Make in India initiative”
The GST on TVs should also be reduced to 18%. Currently, TV above 32 inches has 28% slab GST on it which is the highest amongst the tax slab for television in the world. By doing this, market sentiments will improve and there will be a definite growth & increase in the GST collection.
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The government should strengthen the trade laws as the unorganized sectors terminate in the market and there has been a revenue loss of more than $1billion so far. Strict policies should be provided against these unorganized sectors by the government.
In past 5 years there have been positive developments in infrastructure sector. Our ranking in the global infrastructure has also improved increasingly. Our expectation from the 2019 budget is that all the pending projects from past 5 years, example freight corridors should get completed before the festive season begin.
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All these amendments can improve the sentiments in the market and the buying capacity of the customers. By this, one will soon see a growth in the Tv sector. Also, the 15% market share in the unorganized sector, which has been the pain point in the industry, with all these policies would be a definite market growth in the organized sector. This will also help improve the ‘Make in India initiative’ as under FTA the ‘Make in India initiative’ is a clear threat.