To accelerate the demand for durable consumer goods including television, fridge, washing machine and air conditioners, the electronics industry has suggested the government should scale up research and development to take the country to the path of rapid growth and additionally offer incentives to manufacturers to produce energy-efficient products, in line with the government’s focus on sustainability.
In view of the upcoming Budget 2020-21, Consumer Electronics and Appliances Manufacturers Association (CEAMA) has suggested that the government should focus on the promotion of Research and Development and incentivisation of local manufacturing.
The government should reinstate the reimbursement of R and D expenses to 200 per cent, the Association said. CEAMA president Kamal Nandi said ,’India’s policy and economic environment is undergoing major changes. The Consumer Electronics and Appliance industry is also facing multi-pronged challenges.’ He said the penetration level for durables has traditionally been low in India. ‘Currently, the penetration levels stand at 33 per cent for Refrigerators, 12 per cent for Washing machines, followed by Air Conditioners at 5 per cent and Television (65 per cent in India, while 95 per cent in China).
While the low penetration is a growth opportunity, but the slow pace of penetration rise has a direct impact on demand levels for the category,’ he said. Mr Nandi said the industry has largely been stagnant this year and with increased customs duties, global economic changes and fluctuations in currency and commodity, the demand levels for next year are difficult to predict.―United News of India