Budget 2019: Experts welcome tax relief; expect demand of TVs, beverages, washing machines, ACs to rise

Considering the tax reliefs given to middle class salaried employees, consumer companies now believe that there will be massive rise in their products ahead. 

Budget 2019: Experts welcome tax relief; expect demand of TVs, beverages, washing machines, ACs to rise
The announcements made in the interim budget makes a strong case for Modi government against opposition ahead of 2019 Lok Sabha elections. PTI
Written By: ZeeBiz WebTeam
Updated: Mon, Feb 04, 2019
11:32 am
Mumbai, ZeeBiz WebDesk
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Budget 2019 was meant to be for common man! Right from taxpayers, salaried employees, senior citizens, pensioners, depositors, farmers to home buyers - every major section of India saw ache din at various levels. The announcements made in the interim budget makes a strong case for Modi government against opposition ahead of 2019 Lok Sabha elections. Overall, experts, markets and investors have welcomed the move with open arms, and believe that it will boost Indian economy and consumption demand ahead. Considering the tax reliefs given to middle class salaried employees, consumer companies now believe that there will be massive rise in their products ahead. 

Vijay Mansukhani, MD, Mirc Electronics Ltd (Onida) said, “Increase in disposable income in the hands of both middle class and rural India is definitely going to spur demand for consumer durables goods like televisions, air conditioners and washing machines. This move is definitely positive for us.”

Meanwhile, Nikhil Nanda, MD, JHS Svendgaard Laboratories Ltd said, “Finance Minister has done good job by balancing welfare and growth of the country. Increase in disposable incomes in the hands of middle class and rural India is good boost for FMCG companies like us. Any saving in the taxes are generally spent on kids, which is where our focus is and this raising of income tax exemption limit and increasing standard deduction will go a long way to spur the consumption and spending power of the people.”

Even beverages sector is expecting a surge in demand. Sunu Mathews, MD, LEAP India Pvt. Ltd said, "Though we all know today’s budget is an interim budget, Commendable efforts put up by Government to balance both growth and welfare of the people. Our clientele from FMCG, Beverages are going to benefit possibly from increasing disposable income in the hands of middle class of the country and rural India, this will in turn spur demand for our pallets.”

Consumer durable companies listed on stock exchanges will also witness uptrend in demand. Post budget announcement, the S&P BSE Consumer Durables index finished at 21,412.99 above 157.24 points or 0.74%. Stocks like VIP Industries, Symphony, Voltas, WhirlPool, Bajaj Electronics, Rajesh Exports, Crompton Greaves, TTK Prestige and BlueStar completed on buying note in the range of 0.40% to 4% on Sensex. This reflects that, investors are already optimistic on Budget 2019 announcement for consumer sector.