Festive Price Drops Bring Cheer to Consumers

NEW DELHI/MUMBAI: This Diwali, consumers are in for a treat as the government's plan to rationalize and reduce GST rates on ACs, televisions (above 32-inch), and dishwashers is set to slash retail prices by up to 7-8%. This means savings ranging from a few thousand rupees to over Rs 10,000 on premium products.

Industry experts predict that the timing of these cuts, right before Diwali, will lead to record-breaking festive sales. This move is also expected to counteract any negative market sentiments arising from geopolitical tensions, the IT slowdown, or US tariffs.

Significant GST Reduction to Boost Demand

Currently taxed at 28%, ACs, larger TVs, and dishwashers will soon enjoy a reduced GST rate of 18%. Manish Sharma, chairman of Panasonic Life Solutions India and South Asia, shared his excitement, "Expect price cuts of up to 8% across categories. It's going to be a super Diwali this year."

Sunil Vachani, chairman of Dixon Technologies, highlighted the potential for premium product demand surge, especially for TVs larger than 40 inches. Similarly, ACs and dishwashers, with their current low penetration rates, are expected to see a significant boost in sales.

Manufacturers Gear Up for Increased Production

Leading companies like Samsung, LG, and Sony have already started ramping up production, particularly of premium variants, in anticipation of the GST rate cuts. Kamal Nandi of Godrej Enterprises Group emphasized the necessity of ACs in today's climate and the positive impact of making them more affordable for the masses.