Indian Consumer Durables Industry Analysis

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 and March 2025, electronic goods attracted foreign direct investment (FDI) inflows of Rs. 49,715 crore (US$ 6.87 billion), underscoring strong investor confidence. 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 currently the fastest-growing major market for consumer durables worldwide and is expected to become the fourth-largest by FY27. Mobile manufacturing is a standout story, with production scaling from just two units in 2014 to over 300 by 2024. Domestic output has jumped from Rs. 18,900 crore in FY14 to Rs. 4.22 lakh crore in FY24, with local production now accounting for 99.2% of the market. India’s smartphone market shipped 70 million units in H1 2025, posting modest 0.9% growth, while Q2 shipments alone rose 7.3% year-on-year to 37 million units, according to IDC.

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, the Production-Linked Incentive (PLI) scheme for white goods has attracted 84 companies that have committed Rs. 10,478 crore (US$ 1.20 billion) in investments as of January 2025, with expected production worth Rs. 1,72,663 crore (US$ 19.70 billion) over the scheme period.

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.

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.

Air Conditioner Market in India to increase to US$ 9.8 billion by FY26 from US$ 3.8 billion in FY21 at a CAGR of 20.8%.

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 October 2024, the third round of the PLI Scheme for white goods, specifically air conditioners and LED lights, received 38 submissions, reflecting a net committed investment of Rs. 4,121 crore (US$ 476.2 million).

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 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. Apple wants to move more than 18% of its iPhone production to India by 2025, up from 7% in 2023.

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.

On May 14, 2025, India’s Union Cabinet approved a new semiconductor manufacturing facility, a joint venture between HCL and Foxconn, to be set up near Jewar Airport in the Yamuna Expressway Industrial Development Authority (YEIDA) region, Uttar Pradesh.

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