From aviaton to housing sector, here are key issues govt needs to address

In the consumer durable sector one of the prominent challenges is high compliance costs on account of frequent changes in energy efficiency rating standards

AUTOMOTIVE

Challenges
 

Vehicular pollution and congestion in cities 

Crude oil consumption and imports  

Measures 

• FAME-2 for electric mobility expected to pick up momentum 
• Localisation of components for electric vehicles 
• Proposal to scrap old commercial vehicles by linking it to incentives expected to be reviewed 

AVIATION 
 

Challenges 
 

Despite high traffic, the sector has hit a rough patch, especially following the Jet crisis

Measures  
 

• Reduce taxes on ATF and bring it under GST. Reduce taxation on maintenance, repair and overhaul of aircraft 
• Impetus on creating new airports near overcrowded airports can be considered

CONUMER DURABLES

Challenges
 

High compliance costs on account of frequent changes in energy efficiency rating standards, high time to market, and limited availability of labs 

Measures 
 

• Reduce cost disabilities 
• Reduce any time to market delays due to mandatory testing procedures 

  

RETAIL 

Challenges

The overall mood is buoyant, but the demand outlook is slipping, especially in rural areas. A sub-par monsoon forecast can further affect demand sentiment 

Measures 
 

• Focus on short- and long-term measures to drive demand revival through improvement in farm incomes, creating infrastructure and investments to drive improvements across the agri value chain, and continue the support on pricing 
• Implementation and greater last-mile availability of government rural schemes and the announced budget initiatives can support a demand revival 

TELECOM 

Challenges 

With 1.16 billion telecom subscribers in 2018, India is the fourth-largest app economy. Low internet speed is ailing data consumers, as shown by a 2018 OpenSignal Report. Frequent call drops, network congestions are other problems.  

Measures 
 

• Pre-emptive policy decisions to prevent network clogging due to congestion, keeping in line with goals such as “de-licensing additional frequency bands for public use” as stated in the National Digital Communication Policy 2018 
• Provide support to telecom service providers with already over-stretched balance sheets to expand infrastructure to support the increasing consumer demand and provide better user experience 

HOUSING SECTOR 

Challenges 

• Cost of fund raising extremely high for real estate developers, post-NBFC crisis 
• Reduced velocity of sales, leading to cash flow mismatch 
• Lack of availability of affordable land parcels for building affordable housing 

Measures 

• Reduction in overall transaction costs (stamp duty, GST, etc.) for purchase of immovable property to increase sales 
• Encourage entrepreneurs to set up platforms for rental housing and co-living. 

PwC Team: Akash Gupt, Kavan Mukhtyar, Anurag Mathur, Bhairav Dalal