Reasons to Invest
Upgrading Production Ecosystem: Manufactering push provided through schemes such as PLI Scheme in White Goods, SPECS (Scheme for Promotion of Manufactering of Electronics Components and Semiconductors), EMC 2.0 (Electronic Manufactering Cluster Scheme 2.0), etc.
Surging Demand: White Goods and Consumer Electronics market is expected to exhibit a strong growth of between 10-15% CAGR over the next 5 years.
Attractive State Incentives: Multiple states have announced special incentives for consumer durable manufacterers, with incentives offered on capital expenditure, interest payments, land purchase etc. Special customized incentives also available for large and mega-investors across different states.
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Research Content Provider
Location Analysis
Policy Advisory/Representation
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Regulatory Clearance Facilitation
FDI Norms
100% FDI is allowed under the Automatic Route for manufacturing
100%
FDI Allowed
Budget 2021-2022 Announcements
Government Support
Central Government Schemes
State Incentives
Empowered Group of Secretaries (EGos) and Project Development Cells (PDCs)
Productive Linked Incentive Scheme for White Goods
UJALA Scheme
SLNP Scheme
Trade Scenario
- White Goods
India's Consumer Durables Imports (HS codes 8415,8418,8422,8450,8516,8539) decreased by 1% CAGR from $3.1 Bn to $2.9 Bn from in FY 2018 to 2022.
India's Consumer Durables Exports increased by 5% CAGR from $760 Mn to $915 Mn from FY 2018 to FY2022.
AC imports (HS code 8415) declined by about 10% CAGR from $1.2 Bn to $792 Mn in period 2018 to 2022. AC Exports increased from $165 Mn to $233 Mn, rising by 9% CAGR in the same period.
Major markets for import include China, Thailand, Singapore Vietnam, Turkey, amongst others. Major export markets include UAE, Bangladesh, Nepal, Nigeria etc.
Indian exports are expected to rise further, as local manufactering ramps up and the Production-linked Incentive Scheme incentivises production of key components domestically for ACs and LEDs
Value Chain Assessment
Product Profiles
- Air Conditioners
- Refrigerators
- Washing machines and dryers
- LED Lights
Indian residential AC market is estimated to be around 7 to 7.5 Mn units per annum by volume. The organized sector dominates the industry in terms of sales value and volume, employment generation and investments.
In 2020, urban households constituted 70% share of the demand for ACs from the residential sector. Adoption of latest technologies has led to the introduction of new innovative models in the market such as ACs fitted with copper condenser and blue fin, ubiquitous sensor and Wi-Fi enabled smart features.
Constantly rising temperatures in northern regions of India has made Air Conditioners an increasingly important fixture in homes boosting their sales. Currently, ACs have a penetration of just 4% compared to global average of 30% signifying the huge potential for growth
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