Consumer durables firms have urged the government to retain the stimulus package given to deal with the economic downturn.

It said that an increase in Excise Duty could also increase the prices of products and thereby affect the demand.

However, with the Index of Industrial Production (IIP) soaring 16.8 per cent due to record manufacturing growth, the pressure has increased on the government and the RBI to consider an early exit from the stimulus measures of the past 15 months.

The manufacturing, with an almost 80 per cent weight in the index, surged 18.46 per cent compared to a 0.6 per cent decline in the same month in 2008

The firms said that even if the government wishes to remove the support given to the industry, it should execute these in phases.

Mr. Ravindra Zutshi, Deputy Managing Director of Samsung India said any roll back in excise duty at this stage coupled with the rising input costs will lead to an increase in product prices, which would negatively impact consumer demand

Mr. Zutshi said considering the low access level of consumer electronics and home appliances in India, this sector has the potential of high growth in the country.

Mr. Zutshi also said that in order to boost the India's manufacturing industry, the government support in terms of excise duty and other benefits are much required.

Consumer Electronic Appliance Manufacturers Association (CEAMA), Apex body of consumer durables industry said that even if the government had to roll back stimulus package, it should be done in a phased manner, so that it does not impact growth.

Mr. Yasho V Verma, President of CEAMA, who is also the COO of LG Electronics India, said the Centre had cut CENVAT by 4 % in December 2008 which resulted in price reduction of consumer durables and appliances, and helped in stimulating demand. Therefore, the government should not withdraw the stimulus package and if so, then it should be implemented in phases.