The year gone by has certainly been an eventful one!
While the industry did see marginal growth, a discerning shift is visible at the consumer end, with a distinct preference exhibited for upgradation. While the lower middle-class gravitates toward an FPD TV, the upper middle-class looks for larger-sized UHD TV with 4K HDR technology; large-capacity, feature-laden washing machine; side-by-side refrigerator; and an inverter 5-star AC. The rural consumer is also coming forth and sprucing up his home with electronic products. The funds released by the Seventh Pay Commission, rapid electrification in rural areas, easy finance, and growing popularity of e-commerce platforms are some of the key drivers.
The year 2016 saw an investment commitment of Rs.17,997 crore for projects in electronics manufacturing and system design, with Rs.6038 crore being invested in the first phase. Under the Modified Special Incentive Package Scheme (MSIPS), 75 proposals, which qualify for subsidy, have been approved by the government. The projects are being set up by LG Electronics India, Philips India, Wipro GE Healthcare, Flextronics, Lava, Dixon Technologies, and Samsung India Electronics, among others, for manufacturing products like mobile phones, color TVs, refrigerators, and X-ray machines. A disbursement of Rs.16.8 crore as incentives has been made to SGS Tekniks Manufacturing, Bosch Automotive Electronics India, and Desai Electronics in Maharashtra.
Air purifiers, till now perceived more as a luxury product, in the backdrop of alarming levels of pollution, saw an explosion in demand in some cities of India. Estimated currently as a Rs.250-crore market and projected to be Rs.1400 crore in the next five years, it is a relatively new product for the trade.
The recent demonetization drive has hit sales since November 8, with dealers reporting a 40–70 percent decline, and this trend is expected to continue for some time. However, the credit rating agencies continue to see India as one of the world’s fastest-growing economies and predict a GDP higher than China’s 6.6 percent in the fiscal 2016-17.
On that note, we wish our readers a Merry Christmas and a Happy New Year!