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Market Reports

Indian Consumer Durables Industry

Market Reports - Indian Consumer Durables Industry

1

Quick Facts: Consumer Durable Industry

2

Overview of Consumer Durable Industry

3

India: White Goods Market Growth Outlook

4

Government Initiatives

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Megatrends in Consumer Durable Industry

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Why Invest in India’s Consumer Durable Industry?

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Our Team

Quick Facts: Consumer Durable Industry

  • By 2027, India’s consumer durables sector aims to become the fourth-largest market, increasing its GDP contribution by 1.5 times from the current 0.6%
  • An estimated 30% of the consumer durables market remains unorganized, offering listed Indian players strong growth potential
  • In FY24, average monthly spending on consumer durables surged by 72%
  • In October 2024, the third round of the PLI Scheme for white goods, specifically for ACs and LED lights, saw 38 applications with INR 41.21 Bn in committed investment
  • India Cooling Action Plan aims to cut cooling demand by 20% to 25% and refrigerant demand by 25% to 30% by 2037-38, in line with global climate targets.
  • In India, online channels account for approximately 14% of total consumer durables sales.

Overview of Consumer Durable Industry

India’s consumer durables industry is one of the fastest-growing sectors, driven by rising incomes, rapid urbanization and evolving lifestyle aspirations. The industry encompasses a wide range of products, including household appliances, consumer electronics, and smart connected devices, that cater to both urban and rural demand. With a large young population and an expanding middle class, the market is witnessing a steady shift from basic utility-based products to premium, feature-rich appliances.

India’s consumer durables and electronics industry encompasses a broad range of products, including small and large appliances, consumer electronics, and electrical goods such as fans, lighting, kitchen appliances, refrigerators, air conditioners, washing machines and televisions. Between April 2000 and December 2024, the sector attracted FDI inflows of INR 445.9 Bn, highlighting strong investor interest.

Driven by rising demand and policy support, India aims to achieve electronics manufacturing worth INR 26.1 trillion and exports of INR 10.4 trillion by FY26. The overall Appliances and Consumer Electronics (ACE) market is also expected to nearly double by 2025, reaching INR 1.8 trillion.

As energy efficiency, smart technologies and sustainability become central to consumer preferences, India’s consumer durables industry is poised to grow at a robust pace, establishing itself as a key pillar of the country’s manufacturing and consumption-driven economy.

India Consumer Durables Market (in INR, Bn)

India: White Goods Market Growth Outlook

India’s consumer durables sector is witnessing strong growth across categories.

  • India’s consumer durables market, valued at INR ~2.0 Bn in 2024, is projected to triple and reach INR ~3.5 Bn by 2030.
  • The white goods market is expected to cross INR 1,827 Bn by 2025, growing at a CAGR of 11%, with domestic manufacturing contributing nearly INR 400 Bn annually.
  • The room air conditioner market is projected to reach INR 500 Bn by FY29, with a 20–25% Year-On-Year (YoY) growth expected in FY25.
  • The air conditioner segment overall is estimated to grow from INR 330 Bn in FY21 to INR 853 Bn by FY26 at a CAGR of 20.8%.
  • India’s refrigerator market, valued at INR 467.3 Bn in 2024, is expected to more than double to INR 1,047.1 Bn by 2033, growing at a CAGR of 9.4%.
  • The dishwasher segment is also expanding, with the market expected to cross INR 7,833 Mn by 2025–26, driven mainly by metro cities like Mumbai, Delhi, Bengaluru and Hyderabad.
Production Overview - Major White Goods
Segment-Wise Breakdown of the Consumer Durables Market

Government Initiatives

PLI Scheme for White Goods

  • The Government launched an INR 62.3 Bn PLI scheme for White Goods for FY 2021–22 to FY 2028-29.
  • The scheme aims to boost domestic manufacturing, attract large investments and enhance exports by addressing sectoral challenges and promoting economies of scale.
  • Financial incentives will be offered to companies manufacturing components for air conditioners and LED lights in India.

Rural Electrification & Smart Appliance Push

  • Programs like UJALA, the LED Street Lighting Scheme (SLNP) and rural electrification have expanded access to modern appliances.
  • Expands broadband and digital infrastructure to tier-2 and tier-3 cities.
  • Boosts demand for energy-efficient and IoT-enabled appliances.
  • Creates opportunities for companies to introduce innovative product categories.

Make in India Initiative

  • Make in India promotes local manufacturing across sectors, including consumer durables, to strengthen India’s position as a global manufacturing hub.
  • The initiative supports employment generation and skill enhancement, particularly in manufacturing-intensive sectors like electronics and appliances.
  • It focuses on building a strong manufacturing ecosystem by improving infrastructure, easing regulations and fostering innovation in the durable goods industry.

Energy Efficiency & Sustainability Programs (BEE Star Ratings)

  • Mandatory energy labeling drives demand for efficient appliances.
  • Government incentives for eco-friendly products promote innovation.
  • Supports India’s climate commitments by reducing household energy consumption.
  • Encourages replacement demand for old appliances.

Megatrends in Consumer Durable Industry

Rising Middle-Class and Urbanization

  • Growing disposable incomes drive demand for aspirational products.
  • Urban households are increasingly adopting premium appliances.
  • Tier-II and Tier-III cities are emerging as new growth hubs.
  • Shift from basic appliances to advanced, feature-rich products.

Digital Transformation & E-Commerce Boom

  • Online sales of consumer durables are expanding rapidly.
  • Brands are leveraging omni-channel strategies for wider reach.
  • Digital payments and financing options drive higher adoption.
  • Consumers increasingly rely on online reviews and AI-driven recommendations.

Energy Efficiency & Sustainability

  • Consumers prefer eco-friendly, energy-saving appliances.
  • Government star-rating systems influence purchase decisions.
  • Rise in solar-powered and smart energy solutions.
  • Manufacturers invest in sustainable packaging and supply chains.

Financing & Affordability Options

  • EMI, BNPL (Buy Now Pay Later) and zero-cost financing drive purchases.
  • Consumer finance penetration expands beyond metros.
  • Growth of leasing and subscription-based appliance models.
  • Increasing affordability makes premium products accessible to mass consumers.

Why Invest in India’s Consumer Durable Industry?

Large and Growing Consumer Base

  • India has over 1.4 Bn people, with a rapidly expanding middle class.
  • Rising disposable incomes and urbanization are fueling demand for home appliances and electronics.
  • Young population (median age ~28) is highly aspirational and tech-savvy.
  • Rising urban middle class is driving aspirational consumption.
  • Tier-II and Tier-III cities provide new growth frontiers.
  • Market potential extends across both premium and affordable segments.

Strong Manufacturing Ecosystem

  • Government-backed PLI and Make in India strengthen local production.
  • Large pool of skilled workforce supports manufacturing growth.
  • Expanding supply chain and component ecosystem.
  • Strategic location makes India a hub for exports to Asia and Africa.

Innovation and Brand Diversification

  • Both Indian and global brands are investing in R&D to localize products.
  • Focus on energy efficiency, smart features and customization to create differentiation.
  • New-age D2C brands are gaining traction alongside legacy players.

Technological Disruption & Innovation

  • India is a hotspot for digital adoption and smart solutions.
  • High smartphone penetration drives adoption of connected appliances.
  • Strong presence of R&D centers of global players in India.
  • Domestic startups innovating in affordable, India-specific solutions.

Policy Support & Investor-Friendly Environment

  • Transparent tax regime through GST ensures easier business operations.
  • 100% FDI policies attract foreign capital.
  • Government incentives reduce entry barriers for global players.
  • Stable economic growth strengthens long-term investment prospects.

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