Demand for consumer durables in India has been growing on the back of rising incomes. This trend is set to continue even as other factors like rising rural incomes, increasing urbanization, a growing middle class & changing lifestyles aid demand growth in the sector. Significant increase in discretionary income & easy financing schemes have led to shortened product replacement cycles & evolving life styles where consumer durables, like ACs & LCD TVs, are perceived as utility items rather than luxury possessions. Growth in demand from rural & semi-urban markets is expected to outpace demand from urban markets. Consumer durables market is valued at USD9.7 billion in FY15 & is expected to reach USD20.6 billion by 2020. India is expected to have the 5th largest consumer durable market by 2025.
A normal monsoon in 2017, as predicted by IMD, will boost the farm sector. If IMD forecast turns out to be correct, India would witness a robust agriculture growth continuously for two years. This would have several positives for the economy, including modest inflation and vibrancy in the GDP. A better harvest could lead to improved incomes in the rural heartland that will translate into higher demand for all kinds of goods and services including consumer durables.
