Budget 2024: What Consumer Durables Segment Expects From Upcoming Budget?

India emerged as one of the largest growing electronics players globally, reflecting a growing interest in the integration of cutting-edge technology into daily life. This rapid growth presents huge opportunities for start-ups in the consumer durables segment. With advancements in technology and evolving consumer preferences, these start-ups are well-positioned for substantial growth. Consumers are increasingly drawn to products that are manufactured locally, aligning with the 'Make in India' initiative.

However, start-ups in this sector face significant challenges, particularly in terms of financial support and many more. As the upcoming Union Budget approaches, startups are highly optimistic about addressing challenges while creating a more supportive environment for growth and innovation.

Initiatives for Tax Relief: Start-ups in the consumer durables segment are looking forward to initiatives that reduce taxes while strengthening their financial stability. Start-ups often operate with limited resources and face high initial costs. So reduced corporate tax rates for start-ups, simplification of the tax filing process, and enhanced benefits under Section 80-IAC, which provides tax holidays to start-ups, could significantly reduce the financial burden. Additionally, incentives for R&D expenditure can encourage innovation in developing more energy-efficient and technologically advanced products, according to Harshit Aggarwal, Founder and CEO of Novamax Appliances

Changes in the Regulation of Angel Tax: The Angel Tax has long been a significant obstacle for start-ups. This tax is usually imposed on the capital raised by unlisted companies through the issuing of shares when the amount exceeds the fair market value, which has created numerous complications and uncertainties. Start-ups are hopeful that the upcoming Union Budget will address these issues by providing clearer guidelines and relaxing the current norms. Eliminating or at least rationalizing the Angel Tax will remove a major financial hurdle, encouraging more investments from angel investors and significantly boosting the start-up ecosystem, added Harshit Aggarwal.

Focus On Technical Advancements: Technological advancements stand at the forefront of the consumer durables sector. Therefore, start-ups in this sector expect the government to introduce initiatives that encourage the adoption and development of new technologies. It may include funding for tech incubators, support for digital transformation, and policies that promote the integration of AI, IoT, and other emerging technologies into consumer durable products. By creating a tech-driven environment, start-ups can develop cutting-edge products that meet the modern consumer's demands.

Introduce Initiatives for Skill Development: A skilled workforce is essential for the growth of start-ups in the consumer durables sector. Initiatives aimed at skill development and training can ensure that start-ups have access to a community of talented individuals who can drive innovation and efficiency. Additionally, government-funded training programs, partnerships with educational institutions, and job training subsidies can help to bridge the skill gap in the industry, stated Harshit Aggarwal.

The upcoming Union Budget holds significant promise for start-ups in the consumer durables segment. By addressing these key areas, the government can create a conducive environment for start-ups to grow, innovate, and contribute to India's economic growth.