Indian appliances and consumer electronics industry stood at US$ 9.84 billion in 2021, and is expected to more than double to reach Rs. 1.48 lakh crore (US$ 21.18 billion) by 2025.The Indian consumer durables market is broadly segregated into urban and rural markets and is attracting marketers from across the world.
Indian Toys Industry is estimated to be $1.5 bn making up 0.5% of global market share. The toy manufacturers in India are mostly located in NCR, Maharashtra, Karnataka, Tamil Nadu and clusters across central Indian states. The sector is fragmented with 90% of the market being unorganized and 4,000 toy industry units from the MSME sector.
The toys industry in India has the potential to grow to $2-3 bn by 2024. The Indian toy industry is only 0.5% of the global industry size indicating a large potential growth opportunity. The domestic toy demand is forecasted to grow at 10-15% against the global average of 5%.
In India, the Oral Care segment generated revenues of over $1.57 Bn in 2021, and the market is expected to grow at an annual rate of 4% between 2021 and 2026 to reach $2.08 Bn by FY26.
White goods refer to heavy consumer durables or large home appliances, which were traditionally available only in white. They include appliances such as washing machines, air conditioners, stoves, refrigerators, etc. The White Goods market is estimated to cross USD 21 Bn by 2025 expanding at a CAGR of 11%. Domestic manufacturing contributes nearly USD 4.6 Bn on an average to this industry.
The Indian LED Lights sector encompasses different segments like automotive lighting, general lighting and backlighting in commercial, residential, and industrial applications. The expected revenue growth in the Indian LED lighting market is at 12% CAGR.
The Government of India's policies and regulatory frameworks, such as relaxation of license rules and approval of 51% Foreign Direct Investment (FDI) in multi-brand and 100% in single-brand retail, have been some of the major growth drivers for the white goods sector. According to the Department for Promotion of Industry and Internal Trade (DPIIT), between April 2000 and June 2021, electronic goods attracted FDI inflows of USD 3.2 Bn.
The prime objective of the PLI scheme is to make manufacturing in India globally competitive by removing sectoral disabilities, creating economies of scale, and ensuring efficiencies. It is designed to create a complete component ecosystem in India and make India an integral part of the global supply chains. The scheme is expected to attract global investments, generate large-scale employment opportunities and enhance exports substantially.
The Production Linked Incentive (PLI) Scheme for promotion of domestic manufacturing of Air Conditioners and LED Lights in India of upto INR 6,238 crores ($855 mn) has been approved to be given over a period of 5 years.
Scheme Outcome - 42 applicants with committed investments of INR 4,614 crore have been provisionally selected as beneficiaries under the PLI scheme. The selected applicants include 26 for Air Conditioner manufacturing with committed investments of INR 3,898 crore and 16 for LED Lights manufacturing with committed investments of INR 716 crores.