Meanwhile, the demand outlook for consumer durables appears to be steady. The trends in local power consumption indicate recently there has been a spurt in power consumption and bulk of it is linked to the heatwave conditions and also reflect firm economic undertone. India's power sector has met a record maximum power demand of 250 GW on 30.05.24, the ministry of power noted. Moreover, all India non-solar demand met has also touched an all-time high of 234.3 GW on 29th May, reflecting the combined impact of weather-related loads and growing industrial and residential power consumption in these areas. On 30th May, Northern region also achieved a record demand met; reaching an all-time high of 86.7 GW, while the Western region also touched its maximum demand met of 74.8 GW.

All-India House Price Index Rises To 4.1% Annually In Q4FY24

All-India HPI increased by 4.1 per cent (y-o-y) in Q4:2023-24 as compared to 3.8 per cent growth in the previous quarter and 4.6 per cent a year ago; annual HPI growth varied widely across the cities - ranging from a high of 11.7 per cent (Ahmedabad) to a low of -0.3 per cent (Jaipur). On a sequential (q-o-q) basis, all-India HPI increased by 0.9 per cent in Q4:2023-24; among the ten cities, eight (viz., Delhi, Chennai, Bengaluru, Ahmedabad, Lucknow, Kolkata, Kanpur and Kochi) recorded rise in house prices during the latest quarter. The Reserve Bank released its quarterly house price index (HPI)1(base: 2010-11=100) for Q4:2023-24, based on transaction-level data received from the registration authorities in ten major cities.

Meanwhile, local Steel production index increased by 7.1 per cent in April, 2024 over April, 2023. Its cumulative index increased by 12.4 per cent during 2023-24 over corresponding period of the previous year. Steel is a good proxy of infrastructure growth and economic well-being in the country. Consumer durables sector is greatly influenced by demand for housing and infrastructure development.

According to India Brand Equity Foundation, the Indian Appliances and Consumer Electronics (ACE) market is predicted to nearly double in the next 3 years, reaching approximately US$ 17.93 billion (Rs. 1.48 lakh crore) by 2025. The Indian appliances and consumer electronics industry stood at US$ 9.84 billion in 2021 and is expected to more than double to reach Rs. 1.48 lakh crore (US$ 21.18 billion) by 2025. Electronics hardware production in the country stood at US$ 87 billion in 2022. India's consumer electronics and home appliances market is set to grow by US$ 2.3 billion between 2022 and 2027, registering a CAGR of 1.31%.

Outlook:

Following a scorching rise in temperatures this summer, there has been a spurt in air-conditioner (AC) demand in India with major players nearly doubling sales in May. Even in first week of June, temperatures remain elevated, prompting Union Health Ministry to conduct a meeting with States/UTs to assess the preparedness of Heat wave conditions and fire & electrical safety measures adopted by various health care facilities across the country. As per the long-range outlook forecast issued by IMD on 27th May 2024, it is forecasted that in June 2024, above-normal monthly maximum temperatures are likely over most part of the country, except in parts of the southern peninsular India, where normal to below normal temperatures are most likely. During June, above normal heat wave days are likely over most areas of Northwest India and adjoining parts of Central India.