This is a year of optimism and newer opportunities for the Fast Moving Electrical Goods (FMEG) sector in India. A lot of sectors had a rumpled start in FY21-22 due to the pandemic, FMEG being one. The industries are slowly recovering now but this has to be supported by government policies and announcement. There is a need more than ever for a holistic budget when we are under the ominous time of Covid-19 third wave. The companies are hoping the government will offer concessions and brings down the parity and rates to 18 per cent for all products. The government should also implement measures to lift demand and give consumers additional buying power. There has been a high economic impact on consumers’ income due to the pandemic and this cannot be underestimated. It’s crucial for the Union budget 2022 to focus on offering stimulus for the growth of the economy.
The sector is watching out for announcements that will trigger private consumption, support manufacturing and exports and hope for additional incentives to businesses. There is a need for innovation centres that will encourage newer technologies in the electrical segment. Furthermore, there should be boost in infrastructure investment, focus on providing incentives for investment in manufacturing units, this will help to stimulate the economy. Smart cities based on resilient and sustainable infrastructures enable services, and technology frameworks to work together opening the road to limitless possibilities. Emerging technology and automation should be promoted since this will boost production and also highlight the importance of transitioning to energy-efficient solutions.
The sector is looking forward and hoping for the government to use ‘Atmanirbhar Bharat’ and ‘Make in India’ programmes to attract foreign investments, implement cutting-edge technologies, and increase exports in order to make India a global powerhouse. This will also in turn help increase job prospects, which is necessary for a post-pandemic future. A greater focus on employing emerging technologies to emphasize the importance of using energy-efficient solutions will push the companies to come up with innovative product offerings. Since innovation in the field of mobility, power management will act as the success ladder for the sector in India. These steps may also aid in defining a route toward meeting the net-zero target by 2070.
It’s rightly said ‘where there is a will, there is a way’, as the FMEG sector is on the watch for an optimistic budget. Looking at the key parameters, a budgetary allocation and related policies towards empowering the Fast Moving Electrical Sector are imminent.
The article has been written by Bishan Jain, Director Goldmedal Electricals