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With the 2020 budget unveiled, there have been a lot of key takeaways. For homegrown brands, particularly those in the furniture sector, there seems to be immense potential for growth. The Central Government of India has increased import duties by 5% on over 50 products deemed by the center as “non-essential.” This decision comes after India’s fast-growing imports fell by 8.90% last year, as compared to the 2% decline in exports. The government has since decided to capitalize on this decline; this new venture will discourage Indian companies from importing goods from foreign companies, opening up the playing field for Indian manufacturers and Indian goods. This will greatly increase domestic value for goods and provide a much needed impetus to the Make In India initiative. In the furniture sector, there has been an especially powerful advantage, with customs duties on mattresses, lamps and other furniture hiked from 20% to 25%. This will benefit Indian owned businesses and homegrown companies in the furniture sector. Import duties from other countries such as China were previously very cheap, due to the pacts made by India with countries belonging to the Association of Southeast Asian Nations. This had impacted local manufacturers, who had fallen into a difficult spiral due to stiff contention from foreign competitors. Now, with the hike in import duties, local businesses are projected to see a good year in terms of production and sales.
Additionally, this new proposition is said to greatly aid the MSME sector. MSME stands for Micro, Small and Medium enterprises that are engaged in either manufacturing goods or rendering services to the Indian population. These are domestic enterprises that aim to climb the manufacturing ladder and the proposed budget for 2020 intends to do exactly that. MSME has been known to contribute 29% to the Indian GDP, alongside creating as many as 11 crore jobs through their enterprises. This indicates that MSME and – by extension – labor are at the very core of the Indian economy. Therefore, sectors like the MSME that are labor intensive and previously suffered from impediments to their growth will now benefit from this rise in import duties. In this regard, Finance Minister Nirmala Sitharaman said to Business Today, “…Special attention has been taken to put measured restraint on import of those items which are being produced by our MSMEs with better quality. Keeping in view the need of this sector, customs duty is being raised on items like footwear and furniture.” Hence, it is evident that Indian-origin companies and local manufacturers are expected to face a period of growth and economic boom in the upcoming year, thereby boosting India’s position as a manufacturer in the global economy.
This is a good time as any to drop by at Khenshu, a Make in India initiative that hires local artisans (karigars) for the production of our exquisite silver furniture. Khenshu is a proficient design house that intends to use these initiatives to the fullest, bringing our consumers furniture of the highest quality with maximized labour potential. It’s time to say goodbye to what is familiar and step into the contemporary, luxurious standard of living that Khenshu has to offer and ride the wave of good tidings.