The consumer electronics industry is expecting to get back to double digit growthrate in the next fiscal if the proposed tax exemptions on rural people and middle class tax payers announced in the interim budget goes through.
Apex industry body Consumer Electronics and Appliances Manufacturers Association president and Godrej Appliances business head Kamal Nandi said the measures in tax rates for rural and middle income consumers will boost disposable income which will, in turn, grow consumption of white goods.
The white goods sector growth rate had slowed in 2016-17 second half after demonetisation but still managed to grow at 12%. In 2017-18, the growth rate plunged down to single digit at 7% due to implementation of GST and in the current fiscal the growth rate is around 6% till now. Growth this fiscal is impacted due to increase in crude oil prices and poor consumer sentiments.
Avneet Singh Marwah, CEO at Super Plastronics, the licensee for Thomson and Kodak TV brands, said whenever disposable income grows, especially in rural population, there is a surge in white goods demand.
Nandi said the demand should grow more for entry-level products like direct cool refrigerators, semi-automatic washing machine and LED televisions up to 32 inch. These categories have also seen a reduction of GST rate from 28% to 18% last year which has dropped prices and would further boost sales, industry executives said.