Click to play videoNew Delhi: Your television set is the cheapest it’s ever been - thanks to the coming World Cup, but with the summer approaching - AC prices are soaring. So what does the Budget have to offer the consumer durable buyer.
Anurag and Megha's frequent trips to this house in Gurgaon may seem routine. But nothing quite matches the thrill of moving into your very own home. With their carefully picked furniture finally in place, they are now in the process of figuring out their consumer durables.
Megha says, “We are married for three years. When we started off lots of things came from what I had, husband already had TV, fridge and all. So we have been using old stuff. Now time to move and we want to buy some consumer durables.”
On the agenda is a plasma TV for the hall, a fridge in the kitchen and a washing machine in the washroom.
Places allocated they off to the showroom to compare models and prices.
But are they ready to haul it all and take it home? Not just yet.
“The time frame we are looking at the Budget will be announced soon hoping that the FM is going to look at durables with a benevolent eye. Hopefully some prices as far as manufacturers are concerned will come down. If it's a question of waiting for a month or two we would rather wait and see what happens rather than buying now and may be feeling not so thrilled later, “ Anurag says.
So what does the FM have in store for the white goods industry? Their wish list includes eight per cent cut in excise duty on manufacturing of durables, and a reduction of Value Added Tax from 12.5 per cent to 4 per cent for consumer electronics at par with computer hardware.
If that happens it would mean a reduction in production costs of all durables. But will consumers end up paying less. Experts aren't sure given the already fluctuating prices.
Dawar International Retailer Yogesh Khanna said, “Washing machines prices have increased, AC prices expected to go up further, TV LCDs plasmas price reduction because of the World Cup fever. Companies have no more margins to reduce.”
With companies and retailers literally squeezed for margins consumer durables prices aren't expected to go down further, but the Indian consumer is always on the look out for a good discount, so many like Anurag and Megha may wait until after the budget before zeroing on their brand of TV or fridge.
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