The interim budget for 2019-20 has focused on farmers and the middle class and should boost consumption.
Full tax rebate for income up to 6.5 lacs (including investment under 80 C) will boost sentiments and we foresee a rise in demand for the mass segment of consumer durable goods.
Rural electrification which aims to touch every household by March 2019 coupled with infrastructural push via Gram Sadak Yojana and the rural support schemes will serve as a catalyst in improving the demand for consumer electronics and appliances. Category penetration levels should, therefore, improve faster.
Also, governments continued attention towards skilling will help improve the quality and quantity of skilled labor – critical to industrial growth.
We also welcome governments attention towards climate change and clean energy. We are committed towards the success of the energy efficiency regime and will continue to support the government in this area.
The FM also talked about the vision of making India a 5 trillion dollar economy in the next 5 years and a 10 trillion dollar economy in next 8 years thereafter. We welcome this ambition and would like to affirm that electronics, appliances and AI industry will serve as major growth drivers in the achievement of this objective.
The interim budget though did not provide much further impetus to the indirect tax reforms which are crucial for manufacturing and Make in India. We hope to hear some major announcements in the full budget which may provide the desired support to the ACE Industry and electronic manufacturing.―Equity Bulls