In one of the most significant tax reforms in recent years, the central government has announced a complete overhaul of the Goods and Services Tax structure. The new system eliminates the 12 percent and 28 percent tax slabs and replaces them with a simplified two tier structure. This change is expected to provide a strong boost to consumer spending, especially in the category of durable goods such as air conditioners, televisions, dishwashers, and solar water heaters.
Market experts believe the move will create a more favorable environment for both consumers and manufacturers. With lower effective prices, households are likely to step up their purchases of big ticket items, while listed companies in the consumer durables space could experience a surge in demand and revenue growth.
One of the clearest examples of this expected change can be seen in the air conditioning market. According to a report by Elara Securities, the demand for room air conditioners may increase by at least 10 to 15 percent following the tax rate revision. The current industry size is estimated at around 36,000 crore rupees, and manufacturers such as Amber Enterprises, PG Electroplast, and EPack Durables are expected to be at the center of this shift. Retail chains such as Electronics Mart India and Aditya Vision could also experience a sharp rise in sales volumes as consumers take advantage of reduced prices.
Although the industry had earlier projected a decline of up to 10 percent in fiscal year 2026 due to a weak summer season, the GST cut may cushion the fall and help the sector stabilize. Analysts now expect the market to remain flat or decline only slightly, far better than the pessimistic forecasts made earlier. The one challenge that remains is the high inventory of air conditioners currently in stock. Distributors may have to absorb short term losses due to the tax adjustment, but in the long run the benefits are expected to outweigh the costs.
The television industry is also likely to witness an uplift. The domestic market is valued at around 32,000 crore rupees, with larger screen sizes forming a growing part of sales. Although there are no direct listed beneficiaries, Dixon Technologies, which assembles televisions for multiple brands, could see a recovery in volumes in the second half of fiscal year 2026. The company had struggled with double digit declines in the past year, but the GST reform is being seen as a potential turning point.
Another sector that is quietly preparing to benefit is dishwashers. Still considered a niche product in India with a market size of around 700 crore rupees, dishwashers have been slowly gaining acceptance in urban households. Companies such as IFB Industries and Voltas Beko are well placed to ride this wave of adoption. With lower GST rates, dishwashers may shift from being seen as a luxury product to becoming a practical addition to modern kitchens.
A different but equally important area is solar water heaters. India’s growing focus on renewable energy solutions and sustainable living has already placed solar powered appliances in the spotlight. While their contribution to the overall revenues of major companies such as V Guard Industries and Havells India remains small at less than one percent, analysts see this as a high potential segment that could expand significantly over the coming years. The new GST regime is expected to encourage more households to adopt eco friendly appliances, strengthening both consumer choice and environmental goals.
It is worth remembering that this is not the first time India has witnessed a major GST rate cut. In the earlier reform of 2018, when the government reduced tax rates on large appliances from 28 percent to 18 percent, the industry saw an immediate and measurable surge. Revenues for companies in the appliance sector grew at double digit levels in the following quarters, reflecting the strong influence of tax policy on consumer behavior. The current reform is being viewed as an even bigger step, with the potential to trigger a multi year consumption cycle in durables.
As festive season demand approaches, the reduction in GST rates could not have come at a better time. Lower costs for consumers, combined with renewed optimism in the stock market, are creating a scenario where both households and investors may benefit. While short term challenges like inventory losses are real, the long term picture for consumer durable companies appears brighter than ever.
Closing Thought:
With the new GST structure, India’s consumer durable market is on the cusp of a major shift. From air conditioners to dishwashers and solar water heaters, several sectors are set to see accelerated growth. Investors will be watching stocks like Amber Enterprises, Dixon Technologies, IFB Industries, Havells India, and others very closely in the coming months.
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