India's consumer durables sector set to grow 11% CAGR by 2029, creating 5 lakh jobs

India's consumer durables sector, currently contributing 0.6% to the nation's GDP, is projected to grow at a compound annual growth rate (CAGR) of 11%, reaching US$ 35.73 billion (Rs. 3 lakh crore) by 2029, according to a report by EY Parthenon and CII. The sector's GDP contribution is expected to increase by 1.5 times, aiming to become the fourth-largest market for consumer durables by 2027 and the global leader in this industry by 2030 while also creating 500,000 new jobs. partner and national leader for the consumer product and retail sector at EY Parthenon, Mr. Angshuman Bhattacharya, stated, “India is on its way to becoming a major player in the global consumer durables market, driven by increased domestic consumption, a strong focus on indigenization, and sustainability." He highlighted that the expanding domestic market presents a substantial opportunity for this sector to boost production, bolstered by initiatives like Atmanirbhar Bharat, Make in India, and the Production Linked Incentive (PLI) scheme.

EY Parthenon noted that consumers increasingly invest in premium and value-added products within the durables industry. As discretionary spending for household upgrades rises, air conditioners are becoming a necessity rather than a luxury. TV penetration reached 60% of households in 2023. Technological advancements drive continuous demand for smart appliances, resulting in shorter replacement cycles as consumers seek the latest technologies. Although India currently lags behind other countries in online sales, with nearly 14% online salience, the market is expected to grow, driven by greater brand choice and home delivery options. EY Parthenon emphasized the need for collaboration between government and industry stakeholders to accelerate domestic demand, suggesting incentives for energy-efficient products and harmonizing GST slabs to enhance affordability and boost ownership across all income groups.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.