Consumer durables and real estate sectors see a positive curve in demands
It seems good times could well be back for the consumer goods sector. In the last few months the retail sector and the consumer goods sector have seen some surge in the sales figures. The rise in consumer demand is, however, yet to translate into growth in core sector products such as steel and cement.
The new Government and the positive environment have got Indians buying cars, white goods and even homes, say manufacturers, retailers, and real-estate developers. The first union budget presented by Finance Minister Arun Jaitley also had made provisions for FDI (Foreign Direct Investment), REITs (Real Estate Investment Trust) and InvITs (Infrastructure Investment Trusts). They are expected to increase the flow of money into the Indian markets and give a positive thrust to the consumer durables industry.
The BJP-led Government still has a lot to do for a full-scale economic revival. The risks of a late or a weak monsoon may not yield very good crops and again rise the prices of food grains and farm produces. Eric Braganza the President of Haier India stated that if there is a late monsoon, it will have a direct impact on the purchasing power of rural consumers. This could overall impact the bullishness of consumers to spend during the festive season which is the main season when India invests in consumer durables and electronic items.
Ravi Saund the Chief Operating Officer, CHD Developers Ltd mentioned that as of now, there is a marked improvement in buyer sentiment. The real estate industry is expecting this to materialise in the near future, particularly during the festival season. Saund added that a 25-30 % price increase is expected in the mid-budget category homes by the end of the festival season.
Source- The Hindu Business Line
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