New Delhi [India], September 24 : India’s consumer durables market is expected to grow 8-10 per cent annually to reach Rs 3-3.25 lakh crore by 2030, creating an additional Rs 40,000-50,000 crore opportunity for domestic value addition, according to a joint report by Boston Consulting Group (BCG) and Confederation of Indian Industry (CII).
The report said deeper localisation of components will be critical for India to capture this opportunity and reduce dependence on imports.
Domestic value addition currently accounts for around 50-55 per cent of the sector’s potential and could rise to 65-70 per cent by 2030 as component manufacturing capacity expands.
However, the report cautioned that at the current pace of localisation, a significant share of the opportunity could continue to be met through imports.
“India’s consumer durables market is projected to grow at 8-10 per cent annually to reach INR 300-325K crore by 2030. But the opportunity is much larger than domestic market growth alone,” Abheek Singhi, Managing Director and Senior Partner at BCG, said.
The report identified technology access, manufacturing scale and cost competitiveness as key challenges to localising critical components such as TV display panels, air-conditioner compressors, refrigerator insulation and washing-machine motors.
Component localisation currently ranges between 25 per cent and 70 per cent across major consumer durable categories. TVs and air conditioners are at the lower end, while refrigerators and washing machines have relatively higher levels of localisation, the report said.
It also highlighted significant scope for further growth in domestic demand, noting that household penetration of large appliances in India remains 20-90 percentage points below regional peers.
Rising incomes, easier access to financing, premiumisation, replacement demand and the growth of nuclear families are expected to support the consumer durables market through 2030, it said.
Exports are another major growth opportunity for the sector. India currently accounts for less than 1 per cent of global consumer durables trade, while its exports remain largely concentrated in regional markets such as SAARC countries and the UAE.
According to the report, expanding India’s presence in global markets will require stronger component ecosystems, better testing and certification infrastructure, technology partnerships and improved logistics connectivity.
“Capturing that opportunity will require a globally competitive ecosystem -- with deeper component manufacturing, stronger R&D and product innovation, AI-led productivity, and the scale to serve global markets,” Mehak Dhir, Managing Director and Partner at BCG, said.
The report also called for greater investment in research and development and product innovation, along with wider adoption of generative AI and agentic AI to improve productivity.
It further stressed the need for a predictable regulatory environment to encourage long-term investments and enable Indian manufacturers to compete more effectively in global markets.