India is expected to become the fifth largest consumer durables market in the world by 2025. The consumer electronics market is expected to increase to US$ 400 billion by 2020. The production is expected to reach US$ 104 billion by 2016. The sector is expected to double at 14.7% compound annual growth rate (CAGR) to US$ 12.5 billion in FY15 from US$ 6.3 billion in FY10. Urban markets account for the major share (65%) of total revenues in the consumer durables sector in the country. Demand in urban markets is expected to increase for non-essential products such as LED TVs, laptops, split ACs and, beauty and wellness products. In rural markets, durables like refrigerators as well as consumer electronic goods are likely to witness growing demand in the coming years as the government plans to invest significantly in rural electrification.

Currently, more than 77% of households in urban India have a television, 33% own a refrigerator, 17% have an air cooler, and 13% own a washing machine. Air conditioner penetration in India compares unfavorably with other developing markets, especially Asian countries, along with the other consumer durables categories within the country. The improving living standards have made home washing machines an essential consumer good in the Indian market. The changing environmental dynamics, urbanization and rising income levels are driving the growth of this segment that was once inhibited by the high price point.

The Government of India has increased liberalisation which has favoured foreign direct investments (FDI). Also, policies such as National Electronics Mission and digitisation of television and setting up of Electronic Hardware Technology Parks (EHTPs) are expected to boost the growth of this sector. The consumer durables market is anticipated to expand at a CAGR of 14.8% to US$ 12.5 billion in FY15. Also, the demand from rural and semi-urban areas is projected to expand at a CAGR of 25% to US$ 6.4 billion in FY15, with rural and semi-urban markets likely contributing majorly to consumer durables sales