The stakes, as well as the expectations, are high from the upcoming Union budget with all eyes on the government’s plans to revive the economy and counter the detrimental impact of the pandemic.
While industries across the board fell prey to the impact of Covid-19 and the ensuing lockdown and restrictions, the consumer durable industry did revive post the lockdown relaxation, catering to pent-up demand first which sustained till the year-end due to evolving consumer needs for convenience and hygiene.
However, the recent abnormal surge in the price of raw materials and freight costs cast a shadow on sales forecasts in the forthcoming summer months.
We hope that the government will prioritise the measures necessary to control the cost inflation with liberal budget allocation focusing on strengthening the domestic manufacturing and component ecosystem this year.
As digital adoption and transformation accelerates, increased allocation to improve internet infrastructure and connectivity to bridge the rural-urban divide across geographies will also induce strong consumer demand and stabilize growth patterns in future.
We are hopeful of these initiatives from the government, which will help spur revival in demand and consumption, bringing cheer to both industry and consumers.
(The author is the Chief Executive Officer of Usha International)
Published 30 January 2021, 11:55 IST