BUDGET 2023: In view of growing demand for good quality furniture and dependance on imports, it is imperative that domestic manufacturing should be boosted. Therefore Hettich bats for PLI in furniture.
The Indian furniture market is estimated at $12 billion, with unorganised industries contributing as much as 80 per cent. Social media and increased international travel have given Indian consumers access to niche furniture product solutions. As a result, there is a growing demand for technologically advanced imported products. This has led to an increased import of furniture and its parts, amounting to nearly 15 per cent of the total Indian furniture consumption.
We have observed an overwhelmingly favourable response to and acceptability of products made in India that meet international standards. This trend offers an opportunity for import substitution, and the potential to increase the penetration of Indian exports to the global market.
We anticipate a few initiatives from the government for the growth and support of the furniture industry. These include formalising the guidelines for the Production Linked Incentive (PLI) Scheme for manufacturers of furniture and its parts; notification of the incentives on the export of furniture fittings as introduced in Finance Act 2022; subsidies to units set up in furniture parks or areas as notified by the government; and tax benefits/tax holidays to new furniture units or those undertaking expansion.
These steps would facilitate the coherent growth of the industry, and bring foreign technology to India along with huge employment opportunities.
We believe that these would be pivotal steps to promote Make in India and Skill India Mission, initiatives that have been visualised by Hon’ble Prime Minister for making in India for the world.
Sujeet Kumar, CFO, Hettich India