Indian appliance and consumer electronics (ACE) market reached Rs. 76,400 crore (US$ 10.93 billion) in 2019. Appliances and consumer electronics industry is expected to double to reach Rs. 1.48 lakh crore (US$ 21.18 billion) by 2025.
According to Retailers Association of India (RAI), sales of consumer electronics increased by 2% in September 2020 and 8% in October 2020, as compared with same months in the last year. Electronics hardware production in the country increased from Rs. 4.58 trillion (US$ 65.53 billion) in FY19 to Rs. 5.46 trillion (US$ 73.78 billion) in FY20. Demand for electronics hardware in India is expected to reach US$ 400 billion by FY24. The National Policy (DNP) targets production of one billion mobile handsets by 2025.
In FY20, TV penetration in India stood at 69%, driven by the DTH market. The DTH industry is expected to witness a growth of up to 6% to Rs. 22,000 crore (US$ 2.9 billion) in FY21 while the total count of DTH subscribers in the country stood at 70.58 million in the country in 2020. In October 2020, television manufacturers such as Samsung, LG and Sony have been granted licences by the government to import finished TV sets into India. As of FY20, electronics, domestic appliances and air conditioner market in India were estimated to be around Rs. 5,976 crore (US$ 0.86 billion), Rs. 17,873 crore (US$ 1.80 billion) and Rs. 12,568 crore (US$ 2.56 billion), respectively.
There is a lot of scope for growth from the rural market with consumption expected to grow in these areas as penetration of brands increases. Demand for durables like refrigerators and consumer electronic goods are likely to witness an increased demand in the coming years, especially in the rural areas as the Government plans to invest significantly in rural electrification.
Growing awareness, easier access, and changing lifestyle have been the key growth drivers for the consumer market. The Government of India's policies and regulatory frameworks, such as relaxation of license rules and approval of 51% Foreign Direct Investment (FDI) in multi-brand and 100% in single-brand retail, are some of the major growth drivers for the consumer market. According to the Department for Promotion of Industry and Internal Trade (DPIIT), between April 2000-March 2020, FDI inflow in the electronics sector stood at US$ 2.79 billion.
On November 11, 2020, Union Cabinet approved the Production-Linked Incentive (PLI) scheme in 10 key sectors (including electronics and white goods) to boost India’s manufacturing capabilities, exports and promote the ‘Atmanirbhar Bharat’ initiative.
Mobile phone exports in India are expected to reach a record of US$ 1.5 billion in 2020, of which 98% are expected to be smartphones.
The PLI scheme, which has been approved for 16 electronics firms, including 10 manufacturers of mobile handsets, would further improve India's role in the global mobile market and complement the goal of making the country a global mobile production hub for manufacturers.
Click to access the Consumer Durables Industry Archived Report
In the FY2021-22 Union Budget, the Government of India announced an ambitious divestment target...
In March 2021, the Union Cabinet of India approved a memor...
The vehicle scrappage policy is a government-funded programme ...
The ‘Smart City Mission' is a revolutionary proj...
The handloom and handicraft industry has been the backbone of ...
The government’s objective to strengthen the healthcare ...