Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: For the second consecutive quarter, landmark government policies have had a major impact on
retailers and their ease of doing business in the country. For example, in November, the government
cancelled circulation of INR500 and INR1,000 notes, requesting that they be traded in for smaller bills.
This will lead to an immediate drop in sales for retailers as consumers queue up to trade in notes, however,
over the longer term this will benefit e-wallet platforms, credit/debit cards and digital currencies. FlipKart
and Amazon are already removing cash-on-delivery options for e-Commerce sales and will help develop the
online ecosystem. E-commerce is increasingly becoming a strong alternative to traditional retailers and this
policy will be to its benefit over the long term.
Key Views and Developments
? The government's move to cancel old INR500 and INR1,000 banknotes, which accounted for 86% of
cash in circulation, will benefit digital money and credit/debit cards.
? India is in the process of implementing a landmark goods and services tax bill, approved by parliament in
August 2016. The GST will move the burden of taxation from the state of manufacture to the state of
consumption of goods and services.