Consumer durable industry wishlist
For reasons ranging from progress on Europe's debt crisis to a slowly improving housing market to slightly less gridlock in Congress, the economy and the job market appear better able to withstand setbacks than they were in 2011.
Budget Expectations by George Menezes, COO, Godrej Appliances, for consumer durable industry from Union Budget 2012.
Expectations from Union Budget-2012
1. Government should support sale of appliance to Rural India by offering subsidy to manufacturers, making it a viable operation, as the logistics and distribution cost is very high due to infrastructural constrains in the country to reach rural markets. Also offering tax / excise benefits to consumers, making it affordable for them, will help penetration of Appliances in Rural India, which is merely 4% for Ref and in decimals for others. A tax holiday for sale in Rural India is desired.
2. Appliance industry, even after 50 years of its existence is low on penetration in Indian Homes, Ref at 16 per cent, WM at 7 per cent & AC at 3 per cent. For Appliance industry to survive & grow in such down turn economy, government have to look at options of increasing consumption of Appliance, either by reducing tax / excise to make it more affordable or like China look at tax refund to consumers to promote consumption.
3. Subsidy /benefits to manufacturers for producing energy efficient products, there by helping Government in saving energy, part of this benefit (power saved by using energy efficient products) should flow back to the manufacturers in proportion to their contribution to the savings .
4. Differential tax/excise structure for energy efficient products to make it attractive for consumers to upgrade to better start rating products.
5. With Global warming gaining awareness & importance , its time for government to recognize manufacturers by way of subsidy / benefits for producing eco friendly and green products .
6. Increase income tax slabs or reduce tax for individuals primarily to boost consumption expenditure.