India’s consumer durables sector is expected to grow at 8–10 per cent annually through 2030 to reach ₹3-3.25 lakh crore, according to a joint report by Boston Consulting Group (BCG) and the Confederation of Indian Industry (CII). The report indicated that this could create an incremental ₹40,000–50,000 crore opportunity for domestic value addition across materials and conversion.
The report noted that the growth of the sector will be fuelled by significant headroom in household penetration, rising affluence, nuclearisation, easier financing and wider distribution. At the same time, premiumisation and replacement demand will add another layer of growth, it added.
“At the current trajectory of localisation, a significant share of this opportunity could still be met through imports by 2030. Closing this gap will require deeper localisation of critical components, where technology access and scale economics remain key barriers,” it added.
Current bill-of-materials (BOM) localisation ranges from 25–70 per cent across major categories, with TVs and air conditioners at the lower end and refrigerators and washing machines at the higher end. But critical components such as TV display panels, RAC compressors, refrigerator insulation and washing-machine motors continue to depend on global supply chains.
Abheek Singhi, Managing Director & Senior Partner, BCG, said: “The opportunity is much larger than domestic market growth alone. The next phase must be about building deeper capabilities across components, technology, product design and manufacturing, and using India’s domestic scale as a springboard for global competitiveness. The priority is to make localisation commercially viable, build scale and cost competitiveness, and enable Indian companies to move from manufacturing for India to designing and building for the world.”
Deeper localisation will also need to remain commercially viable while keeping products affordable for consumers as India remains a price-sensitive market, with entry-level prices declining in real terms across key categories despite inflation.
“India’s next chapter in consumer durables will be defined not just by the size of its domestic market, but by the depth of capabilities we build around it. Over the next five years, market growth could create an incremental ₹40,000–50,000 crore opportunity for domestic value addition. 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. The choices we make today on technology, manufacturing scale and ecosystem development will determine whether India evolves from being a large consumer market to becoming a global manufacturing and innovation hub,” added Mehak Dhir, Managing Director and Partner at Boston Consulting Group (BCG).
The report also highlights that unlocking this opportunity will require coordinated action across driving localisation, scaling exports, strengthening R&D and product innovation, leveraging AI for cost and efficiency gains and a regulatory roadmap.
Published on September 24, 2026
