Introduction of PLI scheme a positive move for 13 sectors

We welcome the budget laid out by the government. It focuses on some critical pillars like health and wellbeing, infrastructure, inclusive development, better governance amongst others and is expected to strengthen the vision of Atmanirbhar Bharat. The focus on the vaccination drive is topical and appropriate. Coupled with an overall strengthening of medical infrastructure, we expect that vaccine cold chain in the country should get a boost. Godrej Appliances is already partnering the vaccination drive with its range of advanced vaccine refrigerators and medical freezers.

The introduction of PLI schemes across 13 sectors is a positive move by the Union Cabinet towards making India self-reliant. We hope these are announced in detail soon. This will go a long way in boosting indigenous manufacturing in various sectors including consumer durables / white goods. It will aid in creating more job opportunities in the country, boost the 'Make in India' initiative and support India in becoming a manufacturing hub. The power sector focus in form of electricity connections portability for consumers, capital infusion of Rs1,000 crores towards solar energy or Rs1,500 crores to Renewable Energy Development will help reduce the burden on the grid. All this is expected to lower the electricity costs over time. Coupled with the tax exemptions on affordable housing, this could aid in some pick up in appliances and electronics penetration as well.

The recent sharp rise in steel prices had hit the industry severely. The reduction in customs duty among other various reforms should help stabilize the domestic steel price increase.

The custom duty revision for the compressors, used in refrigeration and air conditioning, from 12.5 per cent to 15 per cent will promote indigenous manufacturing of the same and is in line with making India self-reliant in the long run. There have been increases in import duties on motors and PCBs as well. These are good for the medium and long-term, but will impact price adversely in short term due to insufficient output capacities. With personal income tax remaining unchanged, we hope that GST council will rationalize rates in AC, TV, fans, etc., to stimulate consumer demand.

— Kamal Nandi, president, Consumer Electronics and Appliances Manufacturers Association (CEAMA), and business head & executive V-P at Godrej Appliances