How India's consumer durables industry can foster global leadership by 2030

India's consumer durables industry is set to soar, driven by innovation, indigenization, and a global hub vision by 2030.

In brief:

• India has emerged as a nation with a holistic economic strategy, bolstered by advantageous demographics, technological progress and progressive policy initiatives.
• India’s consumer durables industry accounts for approximately 0.6% of the nation's GDP and is projected to expand at a around 11% CAGR, reaching a market size of INR3 lakh crore by 2029.
• India is anticipated to become the fourth largest market for consumer durables by FY27 driven by strong tailwinds.
• Vision 2030 envisions India as a vibrant global hub for consumer durables and electronics, harnessing the potential of its extensive domestic market and skilled workforce, leveraging technology and sustainability,​ leading India to become an economic superpower.

India's consumer durables industry is a dynamic and rapidly evolving one, mirroring the country's ascent as an economic superpower. Today, the sector is increasingly focusing on indigenization, with an emphasis on local manufacturing and sourcing. 

A new dawn for India’s consumer durables and electronics industry

India is on its way to becoming the fourth largest market for consumer durables by FY27, driven by positive developments in the sector. Consumer durables sector contributes to ~0.6% of India’s GDP, and is expected to grow at ~11% (CAGR) to reach INR3 lakh crore by FY29. Despite the pandemic, the domestic market has experienced a growth of 10% (CAGR) during FY19-24 driven by increasing affluence, household penetration, premiumization and shorter replacement cycles. Going forward, the growth expectation for the sector is expected to be over 11%, with categories like ACs and appliances accelerating as consumers unleash discretionary spending towards household upgrades. Technological shifts towards connected and energy efficient devices are expected to drive incremental growth​.

Technological innovations are at the heart of India’s consumer durables industry, with rapid advancements leading to shorter product replacement cycles. Consumers are enticed by the latest features and improvements, fostering a culture of continuous upgrade and consumption. Products that offer convenience, connectivity, and sustainability are gaining popularity among the burgeoning middle class, driving innovation and competition among manufacturers. India is witnessing a surge in demand for smart and energy-efficient appliances.

India's strategic position in global trade is reinforced by its robust consumer durables industry. The country is poised to become a key exporter of electronics and appliances, leveraging its competitive advantages in cost, quality, and innovation.

The advent of online retail channels has revolutionized the availability of consumer durables in India and has the potential to provide an impetus to its export. The government’s Open Network for Digital Commerce (ONDC) further amplifies this reach, democratizing access to a wide array of products and enabling even the most remote consumers to participate in the digital economy.

Regulatory push shaping the future of the sector

Despite its potential, the consumer durables industry in India faces challenges such as infrastructure bottlenecks, regulatory hurdles, and the need for skilled labor. Addressing these issues is imperative for the sector to realize its full potential.

The government’s "Viksit Bharat" initiative, meaning "Developed India," acts as a catalyst for change, driving the country’s economy towards growth and development. The Pradhan Mantri Aawas Yojana (PMAY), a pivotal initiative that aims to provide affordable housing to the urban poor, has a direct impact on the consumer durables industry, as new homeowners are potential consumers of appliances and electronics, thus stimulating demand. Complementing the PMAY, the Pradhan Mantri Suryodaya Yojana focuses on harnessing solar energy to power homes. This initiative not only promotes the use of renewable energy, but also creates opportunities for the sector to innovate in energy-efficient products.

Vision 2030 and the future of the consumer durables industry

Vision 2030 envisions India as a global hub for consumer durables and electronics, capitalizing on its vast domestic market and skilled workforce. By leveraging technology and sustainability, India aims to create an ecosystem that nurtures innovation and drives economic growth.

In conclusion, India's consumer durables industry is a testament to the country's economic vitality and its aspirations for global leadership. By embracing technological advancements, optimizing supply chains, and fostering indigenization, India is well on its way to becoming a vibrant global hub for consumer durables and electronics. The vision for 2030, supported by government initiatives like PMAY and Suryodaya Yojana, lays the foundation for a future where India's economic development is matched by its commitment to sustainability and innovation.