The demand for consumer durables in India is rising steadily, driven by higher disposable incomes, rapid technological innovation, and changing lifestyles. This surge in demand has intensified competition among domestic and international brands, with India now seen as one of the most important growth markets for multinational corporations.
Between April 2000-March 2026, electronic goods attracted FDI inflows of Rs. 59,953.71 crore (US$ 8,030.05 million). At the same time, India’s domestic market for appliances has grown significantly. As of August 2025, revenues stood at Rs. 1,06,208 crore (US$ 12.12 billion) for refrigerators, Rs. 43,552 crore (US$ 4.97 billion) for washing machines, and Rs. 65,598 crore (US$ 7.52 billion) for air conditioners. According to ICRA, the room air conditioner segment alone is expected to expand 20-25% year-on-year in FY25, followed by steady growth of 10-12% in FY26.
India’s dishwasher market, though still small, is gaining traction. Valued between Rs. 596 crore (US$ 68 million) and Rs. 745 crore (US$ 85 million) in August 2025, it is projected to grow at a CAGR of 3-12% over the next decade, with annual sales expected to cross 1,85,000 units by 2030. Parallelly, the India Major Home Appliances market stood at Rs. 1,86,126 crore (US$ 21.24 billion) in 2025 and is forecast to reach Rs. 2,52,549 crore (US$ 28.82 billion) by 2030, reflecting a healthy CAGR of 6.3%.
India is projected to become the fourth largest market for consumer durables by FY27, with the sector growing at an 11% CAGR. The market size is expected to reach Rs. 3 lakh crore (US$ 33.6 billion) by FY29, driven by increasing affluence, household penetration, premiumization, and technology-driven demand for smart and energy-efficient appliances.
In May 2026, demand for consumer durables strengthened during the summer wedding season, with sales of refrigerators, washing machines, and air conditioners increasing by 20–30% YoY. The growth was supported by improved rural incomes following a healthy harvest and higher discretionary spending, reflecting sustained consumer demand for household appliances.
India’s appliances and consumer electronics sector is expected to grow at a 11% CAGR, reaching Rs. 3,00,000 crore (US$ 36.1 billion) by FY29, driven by premiumisation and rising demand for smart, AI-enabled products.
India is currently the fastest-growing major market for consumer durables worldwide and is expected to become the fourth largest by FY27. India's mobile manufacturing ecosystem has expanded from just 2 manufacturing units in 2014 to over 300 operational units, reflecting the rapid growth of domestic electronics manufacturing under the Make in India initiative. Domestic mobile phone production has increased from Rs. 18,900 crore (US$ 2.14 billion) in FY2013–14 to over Rs. 5.5 lakh crore (US$ 62.23 billion) in FY2024–25, with locally manufactured devices accounting for 99.2% of the domestic market. According to IDC, India's smartphone market recorded shipments of 152 million units in 2025, registering 0.5% YoY growth. The market continued to be supported by rising demand for premium smartphones and increasing adoption of 5G-enabled devices.
The white goods and electronics sector is also on a high-growth trajectory. Electronics and durables are projected to grow threefold, from US$ 24-26 billion in 2022 to US$ 70-72 billion in 2030. The white goods market, valued at US$ 11,788 million in October 2024, is expected to reach an impressive Rs. 15,86,10,300 crore (US$ 18,100 billion) by 2030. Supporting this, In January 2026, the Government of India provisionally selected five additional companies under the fourth round of the Production-Linked Incentive (PLI) Scheme for White Goods. With this, the scheme now covers 85 companies, expected to attract investments of Rs. 11,198 crore (US$ 1.27 billion) and generate cumulative production of Rs. 1,90,050 crore (US$ 21.50 billion) over the scheme period.
In March 2026, the Ministry of Electronics and Information Technology (MeitY) stated that India's digital economy is projected to contribute nearly 20% of GDP by 2030, driven by the rapid adoption of artificial intelligence, digital public infrastructure, cloud computing, and expanding digital services across industries.
In October 2025, the government's Production Linked Incentive (PLI) scheme for white goods (air conditioners and LED lights), with an outlay of Rs. 6,238 crore (US$ 699.5 million) had 83 approved applicants investing a total of Rs. 10,400 crore (US$ 1.17 billion). Notable companies such as Daikin, Voltas, Dixon, and Signify are expanding manufacturing under this scheme.
The smart home segment is another emerging driver. Valued at Rs. 8,000 crore (US$ 912.9 million) in 2023, the market is projected to reach Rs. 36,000 crore (US$ 4.11 billion) by 2028. The overall home category, including both smart and non-smart devices, stood at Rs. 90,000 crore (US$ 10.27 billion) in 2023 and is expected to grow 1.5 times to Rs. 1,40,000 crore (US$ 15.98 billion) by 2028, as per Redseer Strategy Consultants.
The India smartwatch market from US$ 4,942.3 billion in 2025 to US$ 10,632.7 billion by 2035, driven by health awareness, technology advancements, and integration with smart home devices. Customization and personalization options are key trends attracting the youth demographic.
In May 2026, Nothing’s CMF expanded its wearable portfolio with the launch of the CMF Watch 3 Pro, featuring AI-powered health coaching, enhanced fitness tracking, and up to 13 days of battery life, reflecting continued product innovation in India's smartwatch market.
This momentum is reinforced by consumer behaviour trends. Average monthly spending on consumer durables soared by 72% in FY25, fuelled by a wave of home ownership and the furnishing of new homes with modern appliances, according to the CMS Consumption Report 2025.
In September 2025, the GST Council reduced the GST rate on televisions above 32 inches from 28% to 18%, making larger TVs more affordable. This reform sparked a rise in TV sales, with some manufacturers reporting 30-35% sales growth on the first day of the new GST rate.
India’s room air-conditioner (RAC) market is projected to grow at a 12% CAGR, reaching Rs. 50,000 crore (US$ 6.02 billion) by FY 2028–29.
The Indian air cooler market is projected to grow at a 10–12% CAGR, reaching Rs. 22,947 crore (US$ 2.76 billion) by 2033.
India's consumer durables sector, currently contributing 0.6% to GDP, aims to boost its share by 1.5 times and become the fourth-largest market by 2027. With strong growth, it aspires to lead the global industry by 2030.
In May 2026, the Government of Andhra Pradesh approved a customised incentive package for EPACK Durable Ltd. and its subsidiary EPACK Manufacturing Technologies Pvt. Ltd. to support a proposed investment of Rs. 1,084.31 crore (US$ 122.69 million) under the state's Electronics Manufacturing Policy 4.0, strengthening domestic electronics manufacturing capabilities.
In May 2026, Vivo India stated that its proposed joint venture with Dixon Technologies remained subject to regulatory approvals. Under the proposed venture, Dixon Technologies will hold a 51% stake, while Vivo India will hold 49%, to manufacture smartphones and other electronic devices in India, strengthening domestic electronics manufacturing capabilities.
In January 2026, LG Electronics India secured government approval and incentives worth Rs. 705.74 crore (US$ 0.77 billion) for the expansion of its Pune manufacturing plant, strengthening its localization and production capabilities.
In January 2026, the Government of India provisionally selected five companies under the fourth round of the Production-Linked Incentive (PLI) Scheme for White Goods after evaluating 13 applications. The selected companies committed investments of Rs. 863 crore (US$ 97.65 million) and are expected to generate production worth Rs. 8,337 crore (US$ 943.36 million) by FY2027–28.
In December 2025, Bharti Enterprises and Warburg Pincus announced a strategic investment in Haier India, acquiring a 49% stake in the company to strengthen their presence in India’s consumer durables market.
Telangana’s homegrown company Resojet has entered into a memorandum of understanding with TCL for forging a joint venture and includes an investment of Rs. 225 crore (US$ 27.1 million). The joint venture will set up a consumer electronics manufacturing facility.
Apple has significantly accelerated the diversification of its manufacturing operations beyond China, with India emerging as one of its key global production hubs. During FY2025–26, India accounted for an estimated 28% of global iPhone production, supported by expanding manufacturing capacity and a stronger domestic supplier ecosystem. The country also exported iPhones worth over US$ 22 billion, reinforcing its role in Apple's global supply chain and positioning India as a major manufacturing and export base for smartphones.
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.
In February 2026, Prime Minister Narendra Modi virtually laid the foundation stone for the HCL–Foxconn joint venture project, India Chip Pvt. Ltd., at Jewar, Uttar Pradesh. The OSAT facility will be established with an investment of over Rs. 3,700 crore (US$ 433 million), a planned capacity to process 20,000 wafers per month, and is expected to strengthen India's semiconductor manufacturing ecosystem while creating over 3,500 direct and indirect jobs.
India’s consumer durables industry stands at the forefront of a technology-driven transformation, supported by robust domestic demand, expanding manufacturing capacity, and strategic government initiatives. With global brands deepening their presence and Indian companies scaling innovation, the sector is poised to become a key driver of economic growth and a global hub for next-generation appliances and electronics by the end of this decade.
References: Media Reports, Press Releases, Press Information Bureau (PIB), Boston Consulting Group, International Data Corporation
