Aditya Gupta from CEDIA Member, The Soundsmiths
, looks forward to the factors likely to affect the business outlook for integrators in the months ahead.
After almost three decades, India has re-elected a majority government that has been brought back to power in much stronger numbers than before. This new term, therefore, comes with the heavy burden of bigger expectations on several fronts.
The country is grappling with a slowing economy, rising unemployment, dipping consumer goods sales, rural distress and massive financial sector deficits that loom large. The hopes on resolving these will certainly be a balancing act for policy makers, a hard mix of populist and strong reformative actions to ensure lasting impacts.
The specific areas that affect the residential technologies industry are the consumption and new homes stories. The common consensus within the expert community is that these areas will require:
- Some muscle flexing with China to prevent dumping at a crucial time when China is seeking alternate markets to the USA, due to sanctions.
- Further reforms to the last major economic reform: GST, which will simplify the overall taxation process and allow refunds smoothly, subsequently, releasing working capital.
- Reforms and recapitalisation of the banking and finance industry to promote consumer goods lending as well as industrial credit off take, thereby increasing overall consumption.
- The benefits of tax reforms given to the housing industry to kick in and then provide easier finance terms for developers.
- “Make in India” campaign, ease of business for foreign entities to be improved and a huge Infrastructure as well as an increase in expendable incomes directly and indirectly.
On the positive side, we are already seeing a greater supply of stable electricity and a dramatically improving logistical air and road access programme to tier two and tier three cities. This has and is continuing to expand the market space in India, creating plenty of work for the residential integrators in the coming years.