The new NDA-government seems to have positive effect on the consumer durables sector. While the consumer durables sector has seen a recent slowdown, the Consumer Electronics and Manufacturing Association (CEAMA) expects a different story June-onwards. Soaring temperatures and delayed monsoons have led to a hike in sales of air-conditioners and refrigerators.
Simultaneously, cable TV digitalisation, which is anticipated to enter into its 3rd and final phase, is expected to achieve 75 million units in the next 1-2 years. Cable TV digitalisation is dependent on imports, as Indian manufacturers are crippled by an extra 12.5 to 14% VAT, due to cable and DTH operators not providing them 'C' Form, since they are leasing out boxes. Chinese imported set top boxes do not have to face VAT charges. With the massive employment generation and government revenue generated by cable TV digitalisation, it is important to address this issue.
Anirudh Dhoot, President, CEAMA, and Director, Videocon, stated, “We recommend that 'C' form waiver should be applicable to set top boxes. It would provide a boost to India's set top box manufacturing. The set top box industry provides huge potential for economic activity, employment generation and saving valuable foreign exchange and increased revenue for the government.”
In the midst of government policies, a new factor which is being seen as a massive stimulus for the TV sales is the FIFA World Cup 2014, the world's biggest sporting tournament. TV sales are expected to grow aggressively between June-July, especially in soccer-centric markets like West Bengal, Goa, Kerala and the North-East.
New govt initiatives, FIFA World Cup may turn around fortunes of consumer electronics sector | Business Standard