January 16, 2012
Growth in consumer durables likely to accelerate as disposable incomes and adoption of plastic credit rise. Additionally, increasing electrification of rural areas would augment demand. This Sector attracted significant investments even during global recession. Rural markets expected to grow at a compound annual growth rate (CAGR) of 25 per cent from US$ 2.1 billion in FY10 to US$ 6.4 billion in FY15.
100 per cent FDI allowed in the electronics hardware-manufacturing sector under the automatic route. The consumer durables market recorded revenues of US$ 6.3 billion in FY10. During FY03-FY10, the industry expanded at a CAGR of 11.7 per cent.
Urban markets lead the revenues, accounting for two-thirds of the total sales in India. Rural and semi-urban markets are growing at a remarkable pace over the last few years on account of high sales in products such as TVs, washing machines and water purifiers
Consumer durables market expected to double at 14.8 per cent CAGR to US$ 12.5 billion in FY15 from US$ 6.3 billion in FY10. Demand from urban markets is estimated to grow at 7-10 per cent annually.
Demand from rural and semi-urban areas is expected to expand at a CAGR of 25 per cent to US$ 6.4 billion in FY15 from US$ 2.1 billion in FY10. By FY15, rural and semi-urban markets are likely to contribute a majority of consumer durables sales
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