Consumer electronics and appliances industry players Friday said demand for white goods is expected to increase following measure announced to help farmers and middle class in the Union Budget.
The industry expects that sops to the middle class in the Budget, such as tax rebate for income up to Rs 5 lakh and cash doles for farmers, would act as a catalyst to boost the demand.
Besides, the rural electrification bid announced by Finance Minister Piyush Goyal would push the rural demand, said the Consumer Electronics and Appliances Manufacturers Association (CEAMA).
"The Interim Budget for 2019-20 has focused on farmers and the middle class and should boost consumption," said CEAMA President Kamal Nandi.
The industry, which had recorded de-growth in the first half of this fiscal and is struggling for growth, said the full tax rebate "will boost sentiments and we foresee a rise in demand for the mass segment of consumer durable good".
According to Nandi: "Rural support schemes will serve as a catalyst in improving the demand for consumer electronics and appliances. Category penetration levels should therefore improve fast."
"This would have a direct impact of consumption of appliances and we do expect a higher growth from here and help in better manufacturing also," he said, adding: "It's paving way for a good future."
Disclaimer: No Business Standard Journalist was involved in creation of this content