Sector Trend - Outlook     25-Jul-17
Sector
Consumer Durables: Domestic consumer durable players absorb GST impact
Outlook

Increasing awareness, easier access to goods through developing retail channels, increasing availability of consumer finance and changing lifestyles have been the key growth drivers for consumer durable market. The Government of India's policies and regulatory frameworks such as relaxation of license rules and approval of 51% foreign direct investment (FDI) in multi brand and 100% in single brand retail are some of the major growth drivers for the consumer market. With a fairly profitable year of 2016-17, the consumer durable industry is looking forward to maintaining the momentum. Long term growth drivers will also be aided by the implementation of the GST. Normal monsoons and the resultant boost to the agricultural economy and hike in allowances to government employees will propel demand during the forthcoming festive season. Implementation of the 7th pay commission, rising employment opportunities on the back of heavy public spending, expectation of normal monsoon and the inflation targeted approach of the central bank may leave more disposable income in the hands of consumers. This will offer ample growth opportunities to the Industry.

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