|
|
|
Boost to disposable incomes via tax cuts will spur demand for consumer durables
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 27 Jan, 2022
The extension of PLI benefits for consumer durables companies and
increase in customs duty if any in the Union Budget 2022 will drive
domestic manufacturing.
While the PLI scheme
commenced from FY22, some companies have not yet been able to complete
the required capex and drive growth due to Covid waves in FY22. Hence,
we endorse the belief that extension of PLI benefits by 1-2 years will
be positive to industry, ICICI Securities said in a report on the white
goods sector.
Increase in customs duty on certain inputs may
increase India production. Any additional levy on imports of raw
materials may lead to increase in domestic production. It will be
beneficial to manufacturing companies such as Dixon and Amber. However,
we believe, it may disrupt the production of finished goods in the short
term and may raise costs for the companies, the report said.
Any
increase in sops on wind and solar power generation will reduce the
power costs for most companies in the sector. We note power costs amount
to 2-3 per cent of net sales of these companies. However, manufacturers
such as Amber and Dixon may stand to benefit more.
Tax cuts if
any and higher disposable incomes to boost consumption, the report said.
We believe initiatives to boost disposable incomes via tax cuts or
higher government spending will result in higher demand for consumer
durables. We believe initiatives to step up rural consumption (20-30 per
cent of durables consumption) will drive further growth, the report
said.
Any sops to drive growth of the real estate sector will
boost B2B categories such as wires & cables, switches &
switchgear, and lighting.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|