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Shipment of TVs in India increased 15 per cent annually to reach the highest-ever level of 15 million units in 2019 on the back of rising demand for affordable smart television sets.

Indian Consumer Durables Industry Analysis

    Last updated on Sep, 4 2020

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.

Electronics hardware production in the country increased from Rs 1.90 trillion (US$ 31.13 billion) in FY14 to Rs 4.58 trillion (US$ 65.53 billion) in FY19. 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. 

Television industry in India reached an estimated Rs 787 billion (US$ 11.26 billion) in 2019 and is projected to reach Rs 955 billion (US$ 13.66 billion) by 2021. Shipment of TVs in India increased 15 per cent annually to reach the highest-ever level of 15 million units in 2019. 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.

White goods industry in India is highly concentrated. In washing machines and refrigerators, the top five players have more than 75 per cent of the market share, while in air conditioners and fans, it is around 55-60 per cent. On the other hand, kitchen appliances segment is fragmented with top five players having a 30-35 per cent market share. For the issuance of electronic Certificates of Origin (CoO), the Government launched Common Digital Platform, a single access point for all the exporters and all the Free Trade Agreements (FTAs) for all agencies concerned.

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 per cent Foreign Direct Investment (FDI) in multi-brand and 100 per cent 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. As per the revised FDI policy, the Government has introduced certain bars for E-commerce platforms from selling on their websites and has imposed a limit on how much one supplier can sell on their portal. Consumer durable loans in India increased 43 per cent y-o-y to Rs 6,495 crore (US$ 921.4 million) in FY20.

In January 2020, the Bureau of Energy Efficiency (BEE) made it mandatory for all room air conditioners to have a default temperature of 24 degrees Celsius.

Indian Consumer Durables Industry Report (August, 2020)
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