India AC maker Blue Star expects sales bump from Modi tax cuts

25/8/2025 12:31

India's Blue Star expects its room air conditioner sales to beat the company's previous forecast this financial year, thanks to new government plans to slash consumption taxes, a top executive said.



In the nation's biggest tax overhaul since 2017, Prime Minister Narendra Modi this month announced plans to cut taxes on the purchase of everyday goods and appliances from October, a move aimed at boosting consumption in the world's most populous nation as trade tensions with the U.S. grow.



Blue Star, which had forecast growth of 10% to 15% in room AC sales volumes for the year to March, now expects an increase of up to 20% in India's price-sensitive market, Managing Director B. Thiagarajan told Reuters on Friday.



The eventual tax rate on ACs is not clear but it is now at the maximum 28%, so the planned cut should help dealers and manufacturers, who have struggled this year due to a cooler summer.