CEAMA pitches for rationalisation in GST on energy-efficient products, industry projected to grow to Rs.1.5 lakh cr by 2025
The Consumer Electronics and Appliances Manufacturers Association (CEAMA) has been pitching for rationalisation of GST for energy-efficient appliances in order to grow their adoption and provide a boost to the industry. The industry body believes that the consumer durables industry is poised to see strong growth in the coming years on the back of low penetration levels and growing aspirations of consumers. The appliances and consumer electronics industry is projected to grow to about Rs.1.5 lakh crore by 2025.
Eric Braganza, outgoing President, CEAMA, told businessline, “The appliance and consumer electronics segment is expected to end 2023 at close to Rs. 1 lakh crore. It has been projected that the industry will grow to about Rs.1.48 lakh crore by 2025 (IBEF report) The penetration levels in most categories are still low. So the industry growth will be fuelled with an increase in category penetration, increase in average prices as well as growing aspirations of consumers as they are increasingly upgrading to premium products such as large capacity washing machines and bigger sized televisions.”
The industry is estimated to have garnered 15-20 per cent value growth during this festival season driven by higher demand for mid- and premium segment. But demand for mass segment has been a tad muted impacting volume growth as per industry players..
“In previous years, demand use to peak around Diwali. This year it was spread out and good demand trends were seen right from Navratri-Durga Puja and Dussehra period. With the wedding season, the industry is expecting the mass and entry-level segment to begin picking up. November has been a good month for most companies due to Diwali and the wedding season,” Braganza said.
Read more at : business line
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