Consumer durables to grow by 12 per cent: FICCI
24 December 2007
New Delhi: The consumer durables sector will see a 12 per cent growth in 2007-08, despite an inverted customs duty structure and high excise duty on white goods, according to a FICCI survey.
According to the survey, the consumer durable sector grew at 11.5 per cent in 2006-07, and would now grow at a higher rate by 0.5 per cent due to technological advancements, falling prices, declining import tariffs, and innovative marketing techniques.
The survey says that the industry has demanded 40 per cent abatement on MRP-based excise duty on colour televisions and air conditioners, up from the existing 35 and 30 per cent respectively.
According to a release, ''The non-IT consumer durable goods market estimated at Rs35,000 crore in 2006-07 with 11.5 per cent growth, is expected to achieve about 12 per cent overall growth in 2007-08.''
The survey shows high-end products such as LCD TVs, MP3 players, DVDs, split air-conditioners, washing machines, and microwave ovens, which have seen increased manufacturing during recent years, even though they are yet to find a place on the list of items covered by the Central Statistical Organisation (CSO) for calculating its official data, as having excellent growth rates.