The Consumer Electronics and Appliance Manufacturers Association (CEAMA) is pitching for a PLI scheme for the wearables sector at a time when India brands have been seeing rapid growth in the segment. The industry association is also hoping for reduction in GST rates to make consumer durable and electronics products more affordable to boost demand for the industry.
Sunil Vachani, Co-Founder and Executive Chairman, Dixon Technologies, who has recently taken over as the new President of the industry body, told businessline, “ Despite the penetration levels of key product categories being low compared to other markets, the growth has been somewhat muted in recent times. So it all comes down to affordability and one of the biggest concerns for our industry members has been high taxation levels. For instance , air-conditioners attract 28 per cent GST. So, our biggest priority would be to try and discuss with the government and the GST Council as to how gradually GST can be brought down on the products.”
He added that strengthening “Make-In-India”, improving global competitiveness and making the country a global powerhouse for exports in the appliances sector are among the key priorities for the industry body..
Muted consumer sentiment
Responding to a query on muted consumer sentiment in rural markets, Vachani said, “ There is no doubt that post-Covid we have seen metros and cities doing much better in terms of demand and we are seeing higher premium categories such as fully automatic washing machines, side-by-side refrigerators and bigger sized televisions doing well. Consumption has been hit in rural markets. But we are now seeing some green shoots in rural markets and product categories such as semi-automatic washing machines have done reasonably well. With moderation in inflation, consumption in rural markets should start improving.”
Pointing to the PLI scheme for strengthening the component ecosystem for air-conditioners and LED lights, the new CEAMA president said the schemes will strengthen the domestic manufacturing ecosystem. “ We believe there should be a PLI scheme for the wearables sector too. India is now the largest market in the world for wearables and Indian brands are dominating this market segment. They are investing heavily in design. There is a big scope for exports in this segment, “ Vachani added.