Union Budget 2022 Expectations

Prakash P. Chhabria, Executive Chairman, Finolex Industries Limited

“India is on the path to becoming a potential global manufacturing hub. Post the Covid shake-up, economic recovery is still fragile and will necessitate fiscal support. Even globally, the economy is adjusting to the supply chain disruptions due to the pandemic. We are optimistic about the Union budget highlighting support measures for the agricultural and housing sector that will go a long way to accelerate recovery. 

The need for better infrastructure development, digital augmentation, job creation is key to reviving the sector and the economy as a whole. We are expecting the Union Budget to boost India as a destination for international companies.”

Kamal Nandi, Business Head and Executive Vice President, Godrej Appliances

“In the backdrop of the pandemic, the Union Budget 2022-2023 will play an important role in bringing the white goods sector on track and lead the way for the coming financial year. The industry has been grappling with unprecedented commodity prices shortage of components on the supply-side and subdued volume growth especially in high volume segments on the demand side.

Consumer durables like air conditioners, refrigerators, and washing machines have become essential household items, even more so in this pandemic where consumers are grappling with home isolation, work from home, inconsistent availability of domestic help. Commodity price inflation however has led to significant price hikes, even as consumer purchase sentiments are muted due to the economic uncertainty induced by the pandemic. We are expecting this budget to rationalize GST for these products. Air Conditioners are still in the highest tax slab of 28%, which we expect the tax slab to be brought down to 18%. Appliances continue to languish when it comes to penetration levels and lower tax slabs will help correct this, thereby improving the quality of life of Indian consumers, particularly women. Increased penetration and volume will help give a thrust to manufacturing as well in these sectors. Moreover, lowering the GST slab for eco-friendly and energy-efficient products further to 12% will not just help to drive demand but also increase the adoption of sustainable appliances – in line with India’s commitment to climate goals.  

The PLI scheme launched last year will definitely benefit the industry over the long run. We hope that the budget specifically eases the current burden of component shortages and enables an uninterrupted supply chain and equally important, introduces policies that will boost consumption, easing the woes of the industry.”  

source https://nrinews24x7.com/union-budget-2022-expectations/

January 19, 2022