Budget 2020: Steps to enhance growth in the industry

By Dinesh Chhabra,

"Budget 2020 is being keenly awaited by all stakeholders fueled with the expectations of it reviving consumption and spurring growth in the industry. GDP is at lowest in the last decade and hence Industry has lot of expectations from the budget. We expect Government to take long-term initiatives in Budget 2020 that will help infuse positivity , fueling consumer demand and stabilize growth patterns in future. One of the key measures in the sector could be reduction of GST rates on electronic components and rationalization of the slabs for various categories of products. GST rate cuts on components would provide manufacturers with an incentive to expand production. It will also ensure that the cost of consumer durables are reduced, thereby further increasing demand and consumption. This will help reduce import of components into India, and would be beneficial both from the point of view of government’s “Make in India” as well as the Phased Manufacturing Program (PMP).

We also hope that the budget is pro-consumption and has measures so that additional cash is available in the hands of people, which would in turn increase consumption. In addition, policy measure to re-energize the NBFC’s, some of which were AAA rated at one time , and restart the lending cycle will also help put more cash in the hands of the consumers, thereby reviving demand. These measures will encourage this segment to grow at a faster pace. We are hopeful that these steps from the government will help spur revival in demand and consumption, bringing cheer to both industry and consumers.”

(Dinesh Chhabra, is the CEO of Usha International)