Analysts of Technavio, important global technology research and advisory company, published a report about the home appliance and electronic consumers sectors in India. As emerged from their study, this market is growing at a CAGR of close to 10% during the period between 2017 and 2021. Many are the reasons of a so important development and include some government measures to favor the industry and trade growth, as well as consumers habits and choices.
The government of India has allowed 100% Foreign Direct Investment (FDI) in the consumer electronics and home appliances manufacturing sector through the automatic route and 51% of FDI in multi-brand retail. These initiatives, of course, represent a key attraction for foreign investors. Moreover, as they explained from Technavio: “the National Policy on Electronics (NPE) that was drafted in 2011 to boost the Electronic System Design & Manufacturing (ESDM) industry plays a vital role in the growth and upscaling of the consumer electronics and home appliances market in India. In addition, with the help of the Make in India drive, India is on the path of becoming a hi-tech manufacturing hub of electronic products”.
This is possible also thanks to some relevant actions of the Indian government, that has initiated plans to electrify 100% of the country by the end of 2019, thus, increasing the demand for consumer electronics and home appliances during the forecast period.
But also Indian consumers taste changing are a significant driver for the home appliance and consumer electronics development. In fact, people are looking more and more design and premium products, as shown the increasing sales of built-in devices, a trend that is supporting the market value growth.