The Union Budget 2019-20 will be presented in the Lok Sabha on July 5, 2019 at 11 am. The industry and the respective assocations are sending their presentations to the Finance Ministry.
“In the interim budget, we saw some of the announcements meeting our expectations, this budget did address the middle-class housing needs and the farming community expected to have a trickle-down effect for the AC industry. Our expectations from the Budget are high. The ACE industry is looking forward to the continuation of steps taken for the indigenization of the industry with a focus on domestic manufacturing, creating better employment opportunities and rural growth. In addition to that, we expect the government to take further steps towards strengthening the bourgeoisie as well as MSME sectors. The MSME sector has a big role in our sales, logistics, services, and vendor network. Facilitation measures taken by the government for this sector will help in the growth of the electronics business. In terms of policies, we are anticipating a reduction in the GST rates, especially for air conditioning products, to boost the ACE sector. “
―Gurmeet Singh, President, RAMA (Refrigeration & Air Conditioning Manufacturers Association)
Vice President (North) of CEAMA and
Chairman & Managing Director, Johnson Controls-Hitachi Air Conditioning India Limited.
“Our expectation from the Union Budget 2019 is to see reforms that drive consumption and improve consumer demand. The consumer appliances industry witnessed a flat growth last year, and we urge the government to bring in positive policies to lend support and drive growth in the sector. A revision in the GST slabs for large appliances and electronic would allow players to pass on the benefit to the end consumers and buck the trend of slowing consumers spends. Appliances such as TVs, refrigerators and AC’s have evolved from being luxury items to household necessities, and it is important to create affordability to drive consumers demand. Reducing GST rates for televisions above 26 inches to 18% will not only benefit the industry but also the end consumers. We also expect an exemption of BCD on open cells ( TV ) to give the necessary thrust to the market, resulting in an increased demand for TV. Similarly, we urge the Government to lower GST rates for efficient products like Air Conditioners and Refrigerators with a rating of 4 stars and above, bringing them under the 12% slab. This will help fuel the demand and consumption, while also fulfilling consumer and small business aspirations. To improve India’s exports performance and letting outwards shipments drive growth for the country, it is essential for the government to incentivize local firms and establish an ecosystem for domestic manufacturing while also establishing beneficial trade agreements with consumption economies to push exports. In order to realise the Make in India vision, it is essential for the government to reduce basic customs duty for essential components and strengthen a component-manufacturing ecosystem through a phased manufacturing program.”
―Manish Sharma, President and CEO, Panasonic India and South Asia.