India's consumer durables sector is poised for impressive growth, with projections estimating it will morph to become the fourth-largest market globally by 2027. The Confederation of Indian Industry (CII) articulated this potential during the CII Consumer Electronics & Durables Summit 2024, predicting a market size of ₹5 lakh crore by 2030.
During the summit, B. Thiagarajan, who chairs the CII National Committee on Consumer Electronics and Durables and serves as the Managing Director of Blue Star Ltd, underscored the imperative for implementing strong quality standards and frameworks within the sector. While Indian products are steadily gaining traction on the international stage, the voice for exporting Indian standards remains strong to instill greater reliability.
Thiagarajan stated, “The next decade will create numerous opportunities across the value chain in the consumer durables sector.” He highlighted India's existing reputation as one of the fastest-growing major markets and emphasized the opportunities embedded within domestic production and developing indigenous component ecosystems. These elements suggest India's potential to rise as a formidable global manufacturing hub.
Supporting these optimistic viewpoints is various government initiatives, prominently the Production-Linked Incentive (PLI) scheme, which aims to enrich competitiveness and facilitate the nation's transition to self-reliance, as well as technological advancements on the global market platform.
The potential for significant growth within the sector is evident. Analysts expect upwards of $500 billion in foreign direct investment (FDI) and foresee the creation of over 850,000 jobs. Among the categories expected to flourish, the air conditioning segment is anticipated to burgeon, predicting it could become the world's largest by 2040.
To bolster its international reputation, Thiagarajan urged stakeholders to channel investments toward research and development (R&D) and innovation, particularly within artificial intelligence (AI). By marrying AI with consumer electronics, opportunities for market expansion can be pursued aggressively, capturing nuanced consumer needs and fostering groundbreaking advancements.
Echoing Thiagarajan's sentiments, Amardeep Singh Bhatia, the Secretary of DPIIT (Department for Promotion of Industry and Internal Trade), painted a vibrant picture for India at the summit. Bhatia projected the consumer durables sector to ascend to roughly ₹5 lakh crore, alongside generating around 5 lakh skilled jobs by 2030. This promising outlook hinges on innovation, export initiatives, and sustainable growth pathways to effectively tap both domestic and global markets.
Bhatia articulately explained the current consumer durables sector dynamics, noting its strong growth spree bolstered by liberalized investments, the rising startup culture, and substantial advances within R&D. The emphasis on streamlined land availability and expedited clearances through industry corridors and industrial parks paint the sector's future favorably.
Highlighting the need for sustainable practices, Bhatia reminded attendees of the importance of adhering to principles of circularity. He stressed the necessity for industries to align their strategic thinking and investments with export prospects and future demands, placing value on successful, export-driven models seen with countries like Thailand and China.
While acknowledging the viable presence of Indian consumer durables within African and Middle-Eastern markets, Bhatia insisted upon aiming at developed nations, including Japan, as benchmark targets for exports. Prioritizing quality enhancement, technological progress, and increased R&D spending remains pivotal to achieving such ambitious export goals.
Thiagarajan echoed these sentiments by advocating for the extension of the PLI scheme to encompass components, thereby building competitive manufacturing ecosystems at home, attracting foreign investments and courting opportunities to meet international demands.
Angshuman Bhattacharya from EY-Parthenon weighed in, asserting the expansion of the domestic market signified vast opportunities to escalate production quotas. He praised government initiatives, such as Atmanirbhar Bharat and Make in India, as instrumental forces nurturing positive sectoral growth environments.
Bhatia concluded the discussions with optimism about India’s ability to transform the consumer durables sector. He expressed faith in the industry's capacity to overcome present challenges, seize burgeoning opportunities, and integrate value chains effectively, fortifying the sector as a cornerstone of economic growth and job creation.
By focusing on quality, technology, and innovation, India's consumer durables sector stands at the cusp of remarkable evolution. With strategic investments and attention toward sustainable practices, the nation aims to solidify its place on the global manufacturing stage and contribute inclusively to economic development and job growth.
