With the Finance Minister Nirmala Sitharamam all set to present the interim Budget 2023-24, consumer durable and consumer electronics industry is hoping for the government to increase infrastructure spending in order to boost economic growth and PLI schemes that will focus on the key industries. The industry is also betting on the government’s emphasis on ‘Make in India’ and Digitisation initiatives.
Further, the companies in the sector are also hoping for measures that would help support consumption. Pradeep Bakshi, MD & CEO, Voltas Limited, said, “Higher disposable incomes will lead to a promising growth impetus. We look forward to a budget that will create a stable and growth oriented tax environment, which will help in ease of doing business, and will lead to increased economic activity and demand generation.”
Here are views from consumer goods companies on the interim Budget 2024…
Yoshiyuki Kato, Managing Director, PEWIN, Panasonic Life Solutions India
The 2024 budget is expected to be a multifaceted economic plan, targeting infrastructure, clean energy, personal spending, and strategic initiatives to propel economic growth and achieve national goals. There is an expectation to increase spending on infrastructure to boost economic growth and PLI schemes that will focus on key industries. Taking into account the perspective of the manufacturing industry, the ‘Make in India’ initiative will continue to take the central stage in the 2024 budget. Along with this, the prioritizing of the clean energy sector development, in line with the Pradhan Mantri Suryoday Yojana will become a telling case for progress in the coming period. Relief in taxation will leave individuals with disposable cash, with a concentration on tier 2 and tier 3 cities as possible growth drivers. As we look forward to the budget, Panasonic seeks to align its commitment to expansion and continued investment in India with the vision of the nation.
Ravi Saxena, Founder & CEO, Wonderchef
Our expectations for Budget 2024 are anchored in a vision of growth, innovation, and a business-friendly environment. We eagerly anticipate a budget that not only recognizes the retail sector’s substantial contributions to India’s economy but also propels us forward with incentives like reduced taxes, infrastructure support, and streamlined regulatory frameworks. The interim budget will lay the foundation for what the next government will build upon. Therefore, it must prioritise creating an environment that encourages entrepreneurship, embraces technological advancements and positions India as a global powerhouse in retail and manufacturing.
Pradeep Bakshi, MD & CEO, Voltas Limited
With the El Nino effect of 2023 being a thing of the past, the demand for consumer durables is bound to pick up in 2024 and we expect this trend to start peaking with the advent of summers. We firmly believe that the government’s proactive initiatives related to Digitalization and Make in India initiatives will provide the much needed impetus in the right direction for boosting employment and creating global competitiveness for Indian players. We have seen that consumers are increasingly inclined towards products manufactured locally and brands are going all out to fulfill their demands. All these factors coupled with higher disposable incomes will lead to a promising growth impetus. We look forward to a budget that will create a stable and growth oriented tax environment, which will help in ease of doing business, and will lead to increased economic activity and demand generation.
Yogesh Mudras, Managing Director, Informa Markets in India
The budget’s provision of complementary electricity through rooftop solarization is a dual triumph easing financial strain on households and championing environmental sustainability. Aligned with Atmanirbhar Bharat, the commitment to ‘Net Zero’ by 2070 is reinforced through measures like viability gap funding for wind energy, coal gasification, and liquefaction capacity. The commitment to enable 1 crore households to receive up to 300 units of free electricity monthly emphasizes the drive toward sustainable energy adoption. The budget’s forward-looking stance is evident in promoting e-buses for public transport and fortifying the e-vehicle ecosystem through support for manufacturing and charging infrastructure. These measures underscore the government’s dedication to a Greener and Sustainable future for India. The Food Sector witnesses a transformative stride, post-budget. Empowering 11.8 crore farmers with direct financial assistance through PM-KISAN and providing crop insurance to 4 crore farmers under PM Fasal Bima Yojana underscores a strong commitment to agriculture. Additionally, the government’s push to foster private and public investment in post-harvest activities marks a strategic move towards bolstering the entire food supply chain. Exciting times ahead as these initiatives aim to uplift farmers and strengthen the resilience of our food sector.
Avneet Singh Marwah, CEO, Super Plastronics Pvt Ltd
The next financial budgets are crucial to maintaining India’s standing as the 5th largest economy in the world. India contributes $3.4 trillion to the $104 trillion global economy and has the highest young population. To fully realize this potential, the government ought to support consumption. In line with the strong GST trend, we anticipate cutting the GST on LED TVs larger than 32 inches from 28% to 18% in Budget 2024. For the market to flourish, PLA schemes must be expanded to include smart TVs, refrigerators, and washing machines. Income tax slabs might be reevaluated to improve disposable income, which will promote spending and raise consumption in general.
Pallavi Singh Marwah, Sr. VP, SPPL
I applaud the anticipated rise in budget allocation for women, signaling progress over the past decade. The implementation of schemes like direct cash transfers and the potential introduction of skill development programs tailored for women are promising steps. It reflects a commitment to fostering economic empowerment and inclusivity. We look forward to the positive impact these measures can have on the lives of women across the nation, driving both personal growth and contributing to the overall economic landscape. To combat the downfall of the markets and soaring inflation, it is urged that the government take growth-oriented measures to increase sales like simplified GST norms, investment in upskilling, and reforms in tax slabs for consumers as well as retaining the 15% corporate tax for new manufacturing units would help in boosting the retail industry. Since this is an interim budget, monumental changes may not be expected here but those outlining a complete budget.
Mukund Kulkarni, Chief Executive Officer, Pepper Advantage India
The Fintech and BFSI sector applauds the visionary move by Union Finance Minister Nirmala Sitharaman, allocating a substantial Rs 1 trillion corpus for advancing technological research, showcasing the government’s unwavering commitment to innovation. The capital investment outlay witnesses a significant 11.1% increase, reaching 11.11 lakh crores, poised to catalyze private capital expenditure, fostering economic growth and generating extensive employment opportunities.
In addition to this fiscal prowess, the comprehensive development of physical, digital, and social infrastructure, coupled with the promotion of Digital Public Infrastructure (DPI), is deemed crucial for formalization and financial inclusion. Proactive inflation management and the commendable training of 1.4 crore youth under the Skill India Mission underscore the government’s dedication to building a resilient and inclusive financial ecosystem. The announcement of 50-year interest-free loans creates avenues for innovation and entrepreneurship. In a strategic fiscal move, the FY25 fiscal deficit target is set at 5.1% of GDP, FY24 fiscal deficit revised to 5.8%, showcasing the government’s commitment to financial discipline. This blend of interest-free loans and fiscal responsibility paves the way for sustainable economic growth and instilling confidence in economic stability.
Ankit Maini, Managing Director, Veira Group
The surge in ‘Made in India’ products witnessed in the Indian industry last year, coupled with the departure of several Chinese brands, has opened doors for local players. However, competing directly with Chinese brands remains a challenging task. The government must prioritize research and development and streamline the supply chain. Addressing the tax structure on televisions is crucial; currently taxed at 28% on TVs larger than 32 inches, a universal reduction to 18% is recommended, especially considering the expanded role of television in education and information dissemination. As the television industry evolves, it becomes a significant economic contributor through job creation and increased demand for domestic components.
In the pre-budget expectations, encouraging Indian players to explore export opportunities and reducing import duties on open-cell components linked to technology transfer agreements will propel the success of the ‘Made in India’ initiative. This holistic approach fosters a competitive local industry and contributes substantially to the country’s overall economic growth.