Consumer durables market seen at Rs 3 lakh crore by FY29, led by Tier 2 and 3 demand

New Delhi: India’s appliances and consumer electronics industry is expected to become the fourth-largest consumer durables market globally by FY27, with revenues projected to scale to Rs 3 lakh crore by FY29, driven by rising household incomes, aspirational rural demand and wider access to consumer finance.

“India is expected to become the fourth-largest consumer durables market globally by FY27, with the industry projected to grow to Rs 3 lakh crore by FY29 at a CAGR of around 11%,” said Sunil Vachani, Chairman, CII National Committee on Consumer Electronics & Durables. 

Vachani said demand is becoming more broad-based, with rural markets contributing more meaningfully due to electrification, improving credit penetration and steady income growth. He also flagged continued dependence on imported components, especially in critical areas such as display panels and compressors, as an opportunity to deepen domestic value addition.

Industry leaders said 2026 is expected to see steady growth as companies recalibrate portfolios and manufacturing for stricter Bureau of Energy Efficiency (BEE) norms that come into effect from January 1. The focus, they said, is shifting toward quality-led expansion, localisation and AI-enabled innovation as connected homes gain traction beyond Tier I cities.

Manish Sharma, Chair, FICCI Electronics & White Goods committee, described 2025 as a year of “hits and misses”, with cooling categories impacted by weather volatility, even as festive-period demand improved on the back of rate and policy changes that aided large appliances. He said premiumisation trends seen since the pandemic remain intact, with consumers upgrading when the proposition is clear on lifetime cost, service and reliability.

The year also saw large corporate moves in the sector. Chinese appliance major Haier agreed to sell a 49% stake in its India unit to Bharti Enterprises and Warburg Pincus, in a deal that sharpened investor focus on India’s fast-growing white goods market.

Separately, LG Electronics India’s IPO saw heavy investor demand, with reports in October showing it was subscribed multiple times over, underscoring continued appetite for scaled consumer-facing manufacturing plays.

Samsung India Electronics also crossed the Rs 1 lakh crore annual revenue milestone in FY25, according to filings and published reports, a benchmark no other consumer electronics player in India has reported at that scale so far.

Retailers and brands expect the next phase of growth to be led by Tier II and Tier III markets, with demand shifting toward smarter, connected and energy-efficient products as households prioritise convenience and long-term value.