Budget 2024 Expectations: Consumer durable industry calls for 5-12% GST cut
The consumer durables sector outlines important expectations for policy considerations as the budget draws near. The industry is pushing for a 5 or 12 per cent GST cut on both entry-level and luxury appliances in order to increase affordability and spur growth for all income brackets. In order to strengthen local manufacturing and create jobs, tax reductions for raw materials, components, and machinery improvements are emphasised, along with the necessity of continued support for the Production-Linked Incentive (PLI) plan and the Made in India initiative.
In fact, the Union Budget of 2024 plays a crucial role in keeping India as the world’s third-largest economy. With India contributing $3.7 trillion to the global economy and having the largest population of young people, there is a lot of untapped potential.
Let’s have a look at what the industry specialist foresee:
As per Kamal Nandi, Business Head and Executive Vice President of Godrej Appliances, the durables industry will gain from measures that reduce input costs, encourage technological innovation towards building energy-efficient products and lower taxation to induce appliance adoption and penetration in the country. “With temperatures rising above 50°C in many cities, ACs are certainly becoming a necessity. GST reduction will make ACs more affordable to masses and improve the quality of life for many more Indians. We also need to recognise the environmental impact of appliances and recommend addressing it with lower tax rates for consumers to switch to 5-star rated products,” Nandi added.
