India's Consumer Durables Sector Poised for Export-Driven Growth: DPIIT Secy

New Delhi, Oct 1 (KNN) The Indian consumer durables industry is set for significant expansion, with exports expected to play a pivotal role in its growth trajectory, according to senior government officials and industry leaders.

Amardeep Singh Bhatia, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), highlighted the sector's robust growth path at the recent Consumer Electronics & Durables Summit organised by the Confederation of Indian Industry (CII).

Bhatia emphasised that exports, particularly of products like air conditioners and refrigerators, will be crucial in propelling the industry forward.

"Liberalised investments, a dynamic start-up ecosystem, and ongoing innovation efforts are underpinning the sector's growth," Bhatia stated.

He cited a CII report projecting the domestic consumer durable industry to reach approximately Rs 5 trillion by 2030, potentially creating 500,000 skilled jobs across the value chain.

The DPIIT Secretary urged the industry to focus on exports and future demand when planning investments or joint ventures.

Drawing parallels with export-focused economies like Thailand and China, Bhatia stressed that India's true success in this sector would be measured by its ability to export to developed nations such as Japan, beyond its current strong presence in Africa and West Asia.

To achieve this goal, Bhatia emphasised the need for the industry to prioritise quality, stay technologically advanced, and increase investments in research and development.

B. Thiagarajan, Chairman, CII's Consumer Electronics and Durables Committee and Managing Director of Blue Star Ltd, noted that the government's extension of the productivity-linked incentive scheme to components is fostering a competitive manufacturing ecosystem in India.

"This move is attracting global investments and positioning the country as a global manufacturing hub," Thiagarajan observed.

The consumer durables sector, which currently contributes 0.6 per cent to India's GDP, is projected to grow at an 11 per cent compound annual growth rate (CAGR) to reach Rs 3 trillion by 2028-29.

This follows a 10 per cent CAGR during FY19-24, driven by factors such as increasing affluence, household penetration, premiumisation, and shorter replacement cycles.

Climate change has also influenced market dynamics, with frequent heat waves transforming air conditioners from luxury items to necessities. The CII report noted an increase in AC penetration from 6 per cent in 2019 to 10 per cent in 2023.

Similarly, the refrigerator market has seen growth due to new features like digital inverters and convertible fridges, supported by accessible financing. The penetration of refrigerators, particularly premium and energy-efficient models, rose from 30 per cent in 2019 to 35 per cent in 2023.

As India's consumer durables sector continues to evolve, its potential for export-led growth and technological advancement positions it as a significant contributor to the country's economic landscape.

(KNN Bureau)