The upcoming decade is coming with a boom in the consumer durables market in India, set to reach Rs 5 trillion, claims the Confederation of Indian Industry. But what does the country need to achieve that goal smoothly?
According to the Confederation of Indian Industry (CII), India’s consumer durables market is projected to reach Rs 5 trillion by FY30, positioning it as the fourth largest globally by 2027.
On Monday, at the CII Consumer Electronics and Durables Summit 2024, B Thiagarajan, Chairman of the CII National Committee on Consumer Electronics and Durables, stated that while Indian products are becoming increasingly reliable worldwide, a robust quality ecosystem, industry standardisation, and promotion of Indian standards for global export are needed. Nevertheless, the coming decade will present numerous opportunities throughout the sector’s value chain.
Thiagarajan emphasised that by prioritising finished products and developing a domestic component ecosystem, India has strong potential to become a global manufacturing leader.
He acknowledged government support through initiatives such as the production-linked incentive (PLI) scheme, which aims to enhance competitiveness and establish India as a self-reliant, technologically advanced player on the world stage.
Furthermore, India has a target for the sector to contribute 25% to the country’s GDP with its growing manufacturing sector. He highlighted the substantial progress made, including over USD 500 billion in foreign direct investment and creating more than 850,000 jobs. Additionally, he noted that the air conditioning sector is expected to become the largest globally by 2040.
Thiagarajan emphasised that promoting Indian standards globally could enhance the country’s international reputation and ensure product compliance with global consumer expectations. He noted that additional efforts are necessary for sector growth, particularly in research and development (R&D) and innovation.
Highlighting the transformative impact of technological advancements, especially artificial intelligence, he stressed the need for active investment in R&D to integrate AI into consumer electronics and durables. Thiagarajan suggested leveraging economies of scale and strengthening the domestic ecosystem to boost global competitiveness.
