The demand for a wide range of consumer durable goods is growing as a result of the ongoing increase in disposable income and technological innovation in India. This in turn is fueling fierce competition among the various consumer durable brands that are available across the country. India is viewed by multinational organisations as one of the primary markets from which future growth is likely to originate.
The Indian appliances and consumer electronics industry stood at US$ 9.84 billion in 2021, and is expected to more than double to reach Rs. 1.48 lakh crore (US$ 21.18 billion) by 2025. Electronics hardware production in the country stood at US$ 63.39 billion in 2021.
As of 2021, the refrigerator, washing machines and air conditioner market in India were estimated around US$ 3.82 billion, US$ 8.43 billion and US$ 3.84 billion, respectively. The market size of air conditioners is expected to grow to 165 lakh units by 2025 from 65 lakh units in 2019, while refrigerators’ market size is expected to grow to 275 lakh units by 2025 from 145 lakh units in 2019.
According to a report from Counterpoint's Make in India service, shipments of "Made-in-India" smartphones increased 16% YoY in the second quarter of 2022 to reach over 44 million units, while over 190 million smartphones made in India were shipped worldwide in 2021. In September 2022, monthly mobile phone exports from India crossed the US$ 1 billion mark for the first time ever.
The dishwasher market in India is expected to surpass US$ 90 million by 2025-26, driven by rising demand from metro cities such as Mumbai, Hyderabad, Delhi and Bangalore.
The flat panel television (LED, LCD, HD, and UHD) market in India was valued at US 9.05 billion in FY18 and is expected to reach US$ 16.24 billion by FY24, growing at a CAGR of 9.25%. In 2021, TV shipments grew 24% YoY, with the smart TV market also registering 65% YoY growth.
According to Department for Promotion of Industry and Internal Trade, between April 2020-March 2021 (FY21), exports of electronic goods from India stood at US$ 11.1 billion. In May 2022, US$ 1.34 billion worth of electronic goods were exported.
Apple is planning to increase its manufacturing production outside of China, with India and Vietnam both likely to benefit from this decision. Apple is currently in discussions with some of its suppliers about expanding production in India, and potentially even producing goods for export.
Electrical appliances maker V-Guard Industries has announced plans to invest in new manufacturing plants. Over the next 12 months, the company will open four additional factories: two in Hyderabad, one in Vapi, and one in Uttarakhand.
Lenovo has announced that it is considerably expanding its local manufacturing capabilities in India across product categories such as PCs, laptops and smartphones, to satisfy rising consumer demand.
TCL Group announced that it would start manufacturing handsets and TV display panels in Andhra Pradesh. The company plans to recruit 1,000 employees. This development was in line with the company’s plan to invest US$ 219 million to manufacture display modules in the country.
Under government initiatives, 42 companies were selected under the PLI Scheme for White Goods with a committed investment of Rs. 4,614 crore (US$ 580.6 million), which is expected to create additional direct employment for 44,000 people. In the 2nd round, 19 companies filed applications for the PLI Scheme for White Goods, with committed investments of Rs. 1,548 crore (US$ 194.79 million).
Flipkart signed an MoU with the Ministry of Rural Development of the Government of India (MoRD), for their ambitious Deendayal Antyodaya Yojana – National Rural Livelihood Mission (DAY-NRLM) programme, to empower local businesses and self-help groups (SHGs) by bringing them into the e-commerce fold.
In July 2021, the government approved 14 companies under the production linked incentive (PLI) scheme for IT hardware. Over the next four years, these companies are expected to fuel total production of >US$ 21.64 billion. The government has also extended the production-linked incentive (PLI) scheme for large scale electronics manufacturing by a year (until FY26), giving a boost to the industry.
The National Policy on Electronics 2019 is targeting production of one billion mobile handsets valued at US$ 190 billion by 2025, out of which 600 million handsets valued at US$ 100 billion are likely to be exported.
The Indian appliance and consumer electronics (ACE) market is expected to increase at 9% CAGR to reach Rs. 3.15 trillion (US$ 48.37 billion) in 2022. The government anticipates that the Indian electronics manufacturing sector will reach US$ 300 billion (Rs. 22.5 lakh crore) by 2024–25.
References: Media Reports, Press Releases, Press Information Bureau (PIB), Boston Consulting Group, International Data Corporation