India's consumer durables sector is on the brink of significant growth, currently contributing 0.6% to the nation's GDP. According to a recent report by EY Parthenon and the CII, this sector is projected to expand at a remarkable compound annual growth rate (CAGR) of 11%, reaching an estimated US$ 35.73 billion (approximately Rs. 3 lakh crore) by the year 2029. This growth trajectory indicates that the sector's GDP contribution is expected to increase by 1.5 times, aiming to position India as the fourth-largest market for consumer durables by 2027 and a global leader in this industry by 2030. Additionally, this growth is set to create 500,000 new jobs across various sectors.

Mr. Angshuman Bhattacharya, partner and national leader for the consumer product and retail sector at EY Parthenon, emphasized that "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 noted 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.

The report further indicated that consumers are increasingly investing in premium and value-added products within the durables industry. As discretionary spending rises, products like air conditioners are becoming necessities rather than luxuries. Notably, TV penetration in Indian households reached 60% in 2023, showcasing a growing inclination toward modern appliances. Moreover, technological advancements continue to drive demand for smart appliances, resulting in shorter replacement cycles as consumers seek the latest innovations.

While India currently lags behind other countries in terms of online sales, accounting for nearly 14% online salience, the market is expected to see substantial growth. This will be driven by greater brand choices and enhanced home delivery options, making purchasing easier for consumers.

EY Parthenon emphasized the importance of collaboration between government and industry stakeholders to accelerate domestic demand. They suggested providing incentives for energy-efficient products and harmonizing GST slabs to enhance affordability, thereby boosting ownership across all income groups.

In conclusion, as India’s consumer durables sector gears up for substantial growth, the combination of rising domestic consumption, technological advancements, and supportive government initiatives will play a crucial role in shaping the future of this industry. The commitment to sustainability and indigenization will further empower India to emerge as a key player in the global consumer durables market.

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