July I 2021

CONSUMER DURABLES

Indian Appliance and Consumer Electronics Hardware Production

Electronics Industry (US$ billion) in India (US$ billion)
89.40
21.18

10.93
31.10

MARKET
SIZE
2019 2025F FY15 FY20

Production of Major White Goods White Goods Market in India in FY20

(lakh units) (US$ billion)
275 2.56

Refrigerators
165 1.8 Electronics
145 126 Air Conditioners
Domestic appliances
65 70 0.86
Washing & Laundry
SECTOR Machines Air Conditioners

COMPOSITION FY19 FY25E FY20

Note- E- Estimated

Air Conditioners Market (million units) DTH Subscriber Market

(million units)

70.99
16.50 70.70
70.60
70.30

6.50
KEY
TRENDS
FY19 FY25

Production-Linked
Incentive (PLI)
GOVERNMENT Make in India Start Up India scheme
INITIATIVES

• Growing demand: According to the International Data Corporation’s (IDC) ‘Worldwide Quarterly Wearable Device
Tracker’ report, the wearables market (earwear, wristband and watch) in India increased by 170.3% YoY in the first
quarter of 2021, driven by strong demand from users in the country. Work from home culture is expected to aid growth in
the demand for goods that enhance personal convenience at home.
• Increasing Investments: The S&P BSE Consumer Durables Index rose 1.58% in May 2021 and stood at 78.40% higher
over the last year. The government plans to significantly invest in rural electrification and affordable housing schemes.
Between April 2000 and March 2021, Indian electronic goods attracted FDI inflows of US$ 3.1 billion.

ADVANTAGE • Policy support: Due to investor-friendly policies, in June 2021, Samsung set up its display manufacturing unit in Uttar
Pradesh. In July 2021, the government approved 14 companies under the production linked incentive (PLI) scheme for

INDIA IT hardware. Over the next four years, these companies are expected to fuel total production of >US$ 21.64 billion.
• Opportunities: Huge untapped market with substantially lower penetration of consumer appliances compared to other
countries. In FY19, air conditioners had a penetration of five% in India compared to global average of 30%.

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