The Indian consumer durables idustry is broadly segregated into urban and rural. The growth in India’s consumer market would be primarily driven by a favorable population composition and increasing disposable income.
- Appliances and consumer electronics industry is expected to double to reach Rs. 1.48 lakh crore (US$ 21.18 billion) by 2025.
- Electronics hardware production in the country increased from Rs. 4.43 trillion (US$ 72.38 billion) in FY19 to Rs. 5.47 trillion (US$ 89.38 billion) in FY20.
- In FY20, TV penetration in India stood at 69%, driven by the Direct To Home market.
- As of FY20, electronics, domestic appliances and air conditioner market in India were estimated to be around Rs. 5,976 crore (US$ 0.86 billion), Rs. 17,873 crore (US$ 1.80 billion) and Rs. 12,568 crore (US$ 2.56 billion), respectively.
- India has the potential to achieve a value of US$ 100 billion in manufacturing of laptops and tablets by 2025.
- Smartphone shipments in India increased 8% y-o-y to reach 152.5 million units in FY20, thereby making it the fastest growing among the top 20 smartphone markets in the world.
According to the Department for Promotion of Industry and Internal Trade, between April 2020 and December 2020, exports of electronic goods from India stood at US$ 8.77 billion.Future Prospects
The Indian consumer durables industry is expected to generate 5 lakh new employment opportunities and achieve cumulative foreign exchange inflows worth US$ 75 billion and investments of about US$ 1 billion by 2025. Indian appliance and consumer electronics (ACE) market is expected to increase at 9% CAGR to reach Rs. 3.15 trillion (US$ 48.37 billion) in 2022. Increasing electrification of rural areas and wide usability of online sales would also aid growth in demand.