Budget 2024: Consumer Durables Sector's Expectations from the Upcoming Budget

India is becoming a key player in the global electronics market showing a strong desire to bring advanced technology into everyday life. This rapid growth creates big opportunities for new businesses in consumer electronics sector. As technology continues to improve and consumer tastes change these new businesses are in a great position to expand. People are also more interested in buying products made in India which supports government's Make in India initiative.

Start ups in this sector often face big problems especially when it comes to getting financial support. As Union Budget gets closer start ups are hopeful that it will tackle these issues and make things better for them. They’re looking forward to changes that will help them grow and be more innovative.

Initiatives for Tax Relief

Start ups in consumer durables sector are hoping for changes that will ease their financial challenges. Since these businesses often start with limited funds and face high initial expenses, reducing corporate tax rates could help them save money. Making tax filing process simpler would also reduce their administrative burden. Additionally enhancing benefits under Section 80IAC which offers tax breaks to start ups could further ease their financial strain.

Encouraging R&D investment through incentives would support innovation leading to the development of more energy efficient and advanced products. Harshit Aggarwal, Founder and CEO of Novamax Appliances emphasizes that these measures could greatly benefit start ups by lowering costs and boosting their ability to innovate.

Changes in the Regulation of Angel Tax

Angel Tax has been a big problem for start ups. It’s a tax that applies when unlisted companies raise money by selling shares at a value higher than what’s considered fair. This has led to confusion and problems for many start ups.

Start ups are hoping Union Budget will make things better. They want clearer rules and fewer restrictions on how Angel Tax is applied. If tax is removed or made simpler, it would remove a major financial barrier. This change would make it easier for start ups to attract investments from angel investors which would help them grow and thrive.

Focus On Technical Advancements

In consumer durables sector which includes products like appliances, electronics and home goods technology plays a big role in driving innovation and meeting consumer expectations. Start ups in this field are eager for government support to help them integrate new technologies into their products. They’re looking for initiatives such as financial backing for tech incubators places where new tech ideas and start ups can grow and develop.

Additionally, industry wants help with digital transformation which means updating their systems and processes to be more tech driven. Support for integrating advanced technologies like artificial intelligence and Internet of Things into their products is also crucial. By creating an environment that promotes these tech advancements, the government can enable start ups to develop cutting edge products that align with the needs and preferences of modern consumers. This support can help these businesses stay competitive and push the industry forward.

Introduce Initiatives for Skill Development

Harshit Aggarwal emphasizes that for start ups in consumer durables sector to grow having skilled employees is crucial. To make sure these start ups can find talented people who can boost innovation and productivity, it's important to invest in skill development and training. This can be achieved through government funded training programs, partnerships with schools and universities and job training subsidies. These initiatives help fill the gap in necessary skills and ensure that start ups have the skilled workforce they need to succeed.

Final Words

Upcoming Union Budget could be a big boost for start ups in consumer durables sector. If the government focuses on certain key areas, it can make things easier for start ups to expand, innovate and help drive India’s economic growth. This means creating better policies, offering financial incentives and supporting research and development. By doing so start ups in this field could have more opportunities to succeed and make a positive impact on the economy.