The white goods industry is anticipating a bumper festive season as the latest round of GST duty cuts is expected to combine with gains from a healthy monsoon to spur demand in rural as well as urban areas.
Consumer durable makers today welcomed the government’s move to bring — AC, washing machine, refrigerators — in lower GST slab, saying that it will act as a catalyst for the industry.
The industry had a dull festive period last year, ironically on account of GST as teething problems related to its introduction had dampened sentiment. Kamal Nandi, VP at Godrej Appliances, said prices would come down by 7-8% (after making certain adjustments) as new stocks start rolling in.
The move will also help the domestic manufacturing, and help in creating more employment opportunities said Consumer Electronics and Appliances Manufacturers Association. The industry was demanding a lower GST rate on white goods since July last year when GST was implemented.
Officials at other companies such as Panasonic, LG, Samsung and contract manufacturer Dixon too said increased affordability would spur demand, especially in smaller towns and cities where buyers are generally price-sensitive. However, the industry was disappointed at air-conditioners and mid-sized TVs not getting any duty cuts.
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