India’s consumer durables industry is on the cusp of transformation. A recent report by EY-Parthenon and the Confederation of Indian Industry (CII) sheds light on the sector’s immense potential.
By 2030, this industry could become the fourth-largest market globally, and in doing so, it has the power to generate 500,000 fresh employment opportunities.
Current Landscape
Presently, the consumer durables sector contributes 0.6% to India’s GDP. However, this modest share is set to change dramatically.
The industry is projected to grow at a compound annual growth rate (CAGR) of 11%, reaching a market size of Rs 3 lakh crore by 2029.
Rising domestic demand is a key driver. As India’s middle class expands and disposable incomes rise, consumers are increasingly investing in premium and value-added products.
Smart appliances, connectivity, convenience, and sustainability are the buzzwords shaping consumer preferences.
The sector’s focus on indigenisation and sustainability is pivotal. By promoting local manufacturing and sustainable practices, India aims to reduce dependence on imports and create a robust ecosystem for consumer durables.
Consumer Durables Sector Vision 2030: Key Strategies
Encouraging the adoption of energy-efficient products is crucial. Tax breaks and on-bill financing can incentivize consumers to choose eco-friendly options, reducing the energy burden and benefiting both the environment and the industry.
While India currently lags behind in online sales (approximately 14% online salience), the convenience of home delivery and a wider brand selection are driving growth.
The government’s Open Network for Digital Commerce initiative is expected to enhance supply infrastructure. The aim is to reach tier-2, tier-3 cities, and rural areas.
Continuous innovation and product upgradation are essential. Technological advancements shorten replacement cycles, and consumers are keen on the latest features.
The industry must stay agile and responsive to changing consumer needs.
As the sector expands, investing in skill development becomes critical. Training programs and vocational courses can equip the workforce with the necessary skills to meet industry demands.
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