Excise cut extension to help growth: Firms
Welcoming finance minister Arun Jaitley's move to extend excise duty concession till December 31, consumer durables firms on Wednesday said it will help the sector which has seen some growth in the last six months after two years of stagnation.business Updated: Jun 25, 2014 18:13 IST
Welcoming finance minister Arun Jaitley's move to extend excise duty concession till December 31, consumer durables firms on Wednesday said it will help the sector which has seen some growth in the last six months after two years of stagnation.
"In all our interactions with the government, we have been asking for it. This extension in the excise duty concession for consumer durable products will help the industry," Haier India President Eric Braganza told PTI.
Godrej Appliances said that extension of duty benefits is a welcome news for the industry. "It would benefit the industry which is growing from last six month after a stagnation of nearly two years. Its an encouragement for the industry and it would help to continue the growth momentum," said Godrej Appliances Executive Vice President, Sales and Marketing, Kamal Nandi.
To stimulate growth in the capital goods and consumer goods segment, previous UPA government in its interim budget, had announced a reduction in excise duty to 10% from 12% on a range of goods till June 30.
Consumer Electronics and Appliances Manufacturers Association (CEAMA) has also welcomed the move saying the it would improve the sentiments and strengthen the growth.
"We welcome government's move. The industry is passing through such a phase where such measures are required. Reduction of excise duty would strengthen the trend of the growth of the sector," industry body CEAMA Secretary General Suresh Khanna said.
Agreeing with Khanna, Whirlpool of India Vice President (Corporate Affairs & Strategy Asia South) Shantanu Das Gupta said: "The (excise duty concession) extension is good news for the industry as it partially mitigates the cost pressures that the industry has faced." South Korean electronics major Samsung and LG also welcomed government's move saying that it would boost the industry and local manufacturing here.
"We welcome this announcement, it will certainly boost industry." said LG India Sales Head Sanjeev Agarwal.
Samsung said the excise benefits would benefit the local manufacturing.