Budget 2022: Rationalise GST for consumer durables, says Godrej's Kamal Nandi

Godrej Appliances Business Head and Executive Vice President Kamal Nandi hopes that the upcoming Union Budget will help in bringing the white goods sector, which has been impacted severely by the pandemic and global supply and logistics issues, back on track.

"The industry has been grappling with unprecedented commodity prices and shortage of components on supply side and subdued volume growth, especially in high volume segments, on the demand side. In the backdrop of the pandemic, the Union Budget 2022-2023 will play an important role in bringing the white goods sector on track and lead the way for the coming financial year," says Nandi. 

Consumer durables like air conditioners, refrigerators and washing machines have become essential household items, even more so in this pandemic when consumers are grappling with home isolation, work from home, and inconsistent availability of domestic help. "Commodity price inflation however has led to significant price hikes, even as consumer purchase sentiments are muted due to the economic uncertainty induced by the pandemic. We are expecting this budget to rationalise GST for these products."

Air Conditioners continue to be in the highest tax slab of 28 per cent, which Nandi expects to be brought down to 18 per cent slab. "Appliances continue to languish when it comes to penetration levels, and lower tax slabs will help correct this, thereby improving the quality of life of Indian consumers, particularly women. Increased penetration and volume will help give a thrust to manufacturing as well in these sectors," adds Nandi.

He also hopes that the government would lower the GST slab for eco-friendly and energy efficient products further to 12 per cent. This will not just help to drive demand but also increase the adoption of sustainable appliances in line with India's commitment to climate goals.  

Speaking on the production linked incentive (PLI) scheme, Nandi says, "The PLI scheme launched last year will definitely benefit the industry over the long run. We hope that the budget specifically eases the current burden of component shortages and enables an uninterrupted supply chain and equally important, introduces policies that will boost consumption, easing the woes of the industry."

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