Few industries which surely do well in a growing economy are consumer durables, automobile and gadgets. This becomes more true and relevant in an emerging economy like India where access to these items is still very limited. Mostly during the years from 2004 to 2011, fast economic growth led to a hike in discretionary income which led to lot of consumer industries doing well during this period. However, since 2011, there has been slower growth and high inflation eating into household savings. The depreciation of rupee and rising interest rates has added to the situation.
Car, SUV and two-wheelers are expected to do well in 2014-15. With Union Budget being played, keeping in mind the forthcoming elections, they are set to become cheaper due to lowering of excise duty on these items. Automobile industry has been registering an unprecedented negative growth in the last few years; however, it is expected to make a good show within current fiscal.
Electronics items & Gadgets
Household electronics like TVs and Refrigerators are getting cheaper due to the budget and will witness an increase in their sales volume. With this, middle class will have an easy access to these items, who remain the biggest buyers in the country. Consumer gadgets like mobile phones have still not penetrated strongly within the lower middle class and lower income groups. With relief in excise duties, mobile phones and telecommunications services companies would have a better penetration plans during 2014-15.
Last but not the least; the worst may be over for Indian economy. However, persistent inflation, a weak investment environment and political uncertainty due to general elections 2014 may lead to a slow and uneven progress. Having said that, the gradual increase in disposable incomes among people and their rising lifestyle would keep up the show and the demands for basic household needs would be on rise.