Another frightening news has come out for Indian people troubled by Coronavirus. Really, this news is about the increase in the price of goods related to consumer durables by Chinese suppliers.
If these goods are expensive then the companies of India will be forced to raise the price of their product. Because up to 70 per cent of the raw material of this producer is sourced from China.
TV, fridge, AC, washing machine will all become expensive. FICCI has stated in a presentation to the Government of India that Chinese suppliers have increased the prices of television panels by 15 per cent.
At the same time, the price of the ingredient has been developed by two per cent. This will not only increase the price of home goods but making TV, fridge, AC, washing machine will all become stiff. For this reason, even after coming out of lockdown, the Indian market will have to face a different kind of difficulties.
Need for relief set up to Rs 9-10 lakh crore
FICCI says that in view of the state of the market, the Government of India should give a stimulus set of about Rs 9-10 lakh crore to the industry. This suggestion has come at a time when the Indian economy is preparing to start business ventures once again after coming out of lockdown.
70 raw stuff comes from China
At this time, if we look at the Indian consumer durables business, then 70 raw materials come from China. Not only this, the producers here ask for 45 per cent of the goods as a complete build unit (CBU).
In such a place, it is certain that the price of television, air conditioner, music system, washing machine, refrigerators, etc. are set to increase. It is also important that the price of raw materials has increased at a time when the prices of these items are decreasing in the domestic market. In such a way, how can companies increase the price of goods, it has to be seen.