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India’s consumer durables boom has a Rs 50,000 crore localisation opportunity

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India’s consumer durables boom has a Rs 50,000 crore localisation opportunity

India's consumer durables market is expected to grow by 8-10% annually, reaching INR 3-3.25 lakh crore by 2030. Localisation presents a significant opportunity, increasing domestic value addition from 50-55% to 65-70%. The market has room for expansion, with household penetration of large appliances still below regional averages. Strengthening component ecosystems and technology partnerships is essential for competing globally. Investments in R&D and efficient logistics will enhance competitiveness in international markets.

India’s consumer durables market is set for a strong run over the next four years, but the bigger opportunity may lie beyond simply selling more TVs, refrigerators and air conditioners. The market is expected to grow 8-10% annually to reach Rs 3-3.25 lakh crore by 2030, creating an additional Rs 40,000-50,000 crore opportunity for domestic value addition , according to a joint report by Boston Consulting Group (BCG) and Confederation of Indian Industry (CII), ANI reported on Thursday. The catch is localisation. India currently captures around 50-55% of the sector’s potential through domestic value addition, a share that could rise to 65-70% by 2030 as component manufacturing expands. But if localisation does not accelerate, a significant part of the opportunity could continue to be met through imports, the report said. Advt

That makes components the next battleground for the industry. Localisation currently ranges from 25% to 70% across major consumer durables categories, with TVs and air conditioners at the lower end and refrigerators and washing machines showing higher levels of domestic sourcing. Critical components such as TV display panels, air-conditioner compressors, refrigerator insulation and washing-machine motors remain difficult to localise because of challenges around technology access, manufacturing scale and cost competitiveness.


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