Budget Plans to Help Indian Wood Panel Industry

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The budget of 2020 offered a fresh perspective to see things in the changing economic scenario for several sectors. Entrepreneurs of today understand that the restructuring and reforms are meant for the long term goal. There is nothing short term and we cannot expect any booster dose from the government. However, the positive impact on real estate with the pre-budget sanction of Rs 25000 crore by the government for completion of 1600 stalled projects and extension of exemptions for affordable housing during budget promises to provide some kinetic energy to the snail paced sector.

The restructuring in income slabs, offering flat income tax slabs, reduced hassles in tax filing and bringing transparency through e-assessment is a direct and immediate change. The target and timeline driven allotted budget for infrastructure, Delhi- Mumbai connect, freight corridors, extension of exemptions in budget housing, high spent on clean drinking water and increased spending on divestment and offering exemption for start-ups are direct benefits that will have immediate positive impact on businesses. All these are expected to boost consumption and increase demand for building materials.

The increase of import duty on furniture items are straightaway connected to Indian wood panel industry and trade because it will enable increased consumption of raw materials here in Indian furniture making activities. We estimate a significant 8-10% increase in domestic consumption alone with respect to wood panels and decorative surface material demand. If global economy is supportive & positive, trade wizards are of firm belief that India should be on the cusp of growth and rebound from here on.

The present market scenario is seemingly better and looks promising. Demand for plywood, Film faced plywood, decorative laminates and PB, MDF, are in better flow than last two quarters. The sales in decorative veneers and highlighters have seen a flat line that may be due to steep pressure on consumers from the ongoing economic slowdown. The panel manufacturing industry and the wholesale community has been under tremendous stress since a couple of years but there is a build-up of optimism for 2020. The raw material prices have eased a little, and the banks have eased up financing, supported by government fund to stalled projects.

Growth is expected in industrial manufacturing and demand of commercial and warehousing spaces is indicating better prospects in the recent future. We hope to meet many of the industry people in Bangalore show despite coronavirus fear looming large across the globe! Meet us at Indiawood 2020, hall-5, stall-B204 from 27 February to 2 March.

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