As we approach the Interim Budget 2024, the CDIT industry anticipates a budget that acknowledges its pivotal role and provides essential incentives for growth. The industry hopes for reduced taxes to alleviate financial burdens, and relaxation of compliance requirement to streamline operations.
FM is scheduled to announce the interim budget on February 1.
Nikhil Sethi, partner and national leader, KPMG India said, “India Inc could expect a budget that promotes consumption to rekindle the investment cycle. This could be on the back of promoting manufacturing, creating a level playing field for smaller manufacturers, and tactical allocations toward infrastructure coupled with policies supporting rural growth.”
“In a bid to curb costs on electronics, we would expect certain measures to reduce duties/ tariffs on key parts and components. We could also expect GST reliefs to re-ignite consumer sentiment in India. Promoting local manufacturing via the PLI schemes across several electronic categories or giving tax exemptions to smaller manufacturers could help drive growth for the durables section,” he further added.
Reduced GST
The industry stalwarts have also urged the Government to reduce GST on consumer durables from 28 per cent to 18 per cent.
“As consumer demand is not favourable globally, the same might be reciprocated in India, which needs to take corrective measures. Despite the game-changer PLI scheme by the GOI on electronics manufacturing, we still haven’t seen any projects take off a semiconductors or open-cell panels. The government needs to take it to closure, as it is crucial in terms of raw material backward integration for Make in India,” said Avneet Signh Marwah, CEO, SPPL – exclusive brand licensee of Thomson in India.
“Reducing GST on essential and aspirational appliances to 12 per cent or 5 per cent will boost affordability and growth across income level,” added Dr. Mahesh Gupta.
Read more at: ETRetail.com
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