India’s Consumer Durables Market Seen Growing To Rs 3.25 Lakh Cr By 2030: BCG-CII

New Delhi, Sep 28 (KNN) India’s consumer durables market is projected to reach Rs 3-3.25 lakh crore by 2030, creating an additional Rs 40,000-50,000 crore opportunity for domestic value addition across materials and components, according to a joint report by Boston Consulting Group (BCG) and the Confederation of Indian Industry (CII).

Consumer Durables Market To Grow 8-10% Annually

The report said India’s consumer durables market is expected to grow 8-10 percent annually through 2030, driven by rising household penetration, incomes, nuclear families, easier financing, wider distribution and premiumisation.

China’s market is projected to grow 1-2 percent annually, compared with around 3 percent in the US and 1-3 percent in Japan, reported PTI.

Imports Could Limit Domestic Value Addition

The report cautioned that much of the opportunity could still be met through imports unless domestic component and material manufacturing capacity expands. BOM localisation currently ranges from 25-70 percent across consumer durable categories and is projected to reach 30-80 percent by 2030.

Significant localisation gaps remain in TV display panels, room AC compressors, refrigerator insulation and washing machine motors.

Technology Partnerships Needed To Deepen Localisation

The report said technology partnerships and joint ventures would be needed in areas where technical know-how remains concentrated among global suppliers, while manufacturing clusters could help address scale and cost disadvantages.

India’s Global Export Share Remains Low

Global consumer durables trade is projected to reach USD 900-950 billion by 2030, but India’s share currently remains below 1 per cent, the report said.

India’s exports remain concentrated in neighbouring markets and regions such as SAARC countries and the UAE, with limited penetration in major global import markets.

High Costs, Scale Constraints Weigh On Exports

The report attributed India’s competitiveness gap to higher material costs, limited scale and backward integration, technology and policy gaps, and inadequate testing and certification infrastructure.

Citing Thailand’s AC industry, where its share of global exports rose from 16 percent in 2010 to 22 percent in 2025, the report recommended export-oriented manufacturing clusters, support for joint ventures and technology acquisition, shared testing facilities, lower financing costs and better access to priority markets.

R&D Investment Trails Global Peers

It also noted that leading listed Indian consumer durables companies invest less than 1 per cent of revenue in R&D, compared with 1-4 per cent among global peers.

The report said greater support for innovation would be required alongside manufacturing capacity expansion.

AI Adoption Could Support Manufacturing Competitiveness

The report said Indian business leaders are optimistic about AI’s potential returns, though workforce readiness remains a constraint. 

Generative and agentic AI could improve efficiency across manufacturing, supply chains, product development and customer service, supporting competitiveness and export growth. 

(KNN Bureau)