CONSUMER DURABLE INDUSTRY IN INDIA – PRESENT TREND, CHALLENGES AND FUTURE PROSPECTS

Consumer durable is one of the fastest growing industry segments in India. This industry has demand from both urban and rural markets. Urban markets account for the major share i.e., 65% of total revenues in the Indian consumer durables sector. In rural markets, durables such as refrigerators and consumer electronic goods are likely to witness growing demand in the coming years. India is likely to emerge as the world's largest middle class consumer market with an aggregated spend of nearly US$13 trillion by 2030 as per a report by Deloilte titted, “India matters, winning in growth markets”. As against the Compound Annual Growth Rate (CAGR) of 13% in FY 13- FY 14, it is expected to expand at CAGR of 14.8% in FY 2015. India's consumer durables industry accounts for more than 2/5th of end- consumer spending, and creates three indirect jobs for every direct job and contributes to more than 5.5% of the index of industrial production according to a Federation of Indian Chambers of Commerce and Industry- Ernst &Young Report. This article aims at portraying the factors that are contributing to the growth of the consumer durable goods market, the production, penetration level of the consumer durables viz., Television, Refrigerators, Washing machine, and Air conditioners, their growth rate and market size and SWOC analysis of the industry.