In a conversation with The Indian Express, SWAPNEEL NAGARKAR, business head and executive vice president at Godrej Interio, discussed global trade dynamics, India’s quality control order (QCO) on furniture products, and trends in domestic demand. Nagarkar, who also chairs the Confederation of Indian Industry (CII) Task Force on Furniture, said India’s furniture standards have been framed keeping consumer interest in mind. Edited excerpts:
The US is India’s largest furniture export market. Given recent tariff-related developments, where do you see things headed in the near future?
We’re confident the Indian government will resolve tariff issues with the US amicably, so business continuity shouldn’t be affected. In fact, with stiffer tariffs on a neighbouring country and some others, India is now more competitive — creating an opportunity to increase exports. Most Indian exports are wooden furniture, especially carved pieces from Rajasthan, which see strong demand abroad. Meanwhile, India’s domestic furniture market is vast — estimated at around Rs 2 lakh crore, including both organised and unorganised players. It’s also highly fragmented, so as an industry, our current focus is on streamlining and better addressing domestic demand alongside growing exports.
As India negotiates trade agreements with Europe and the US, there has been some pushback on certain quality control orders (QCOs), including the one on furniture products. How should we navigate this?
When FTAs are discussed, it’s important that both countries uphold quality standards. India hadn’t effectively modernised furniture-related standards. But, in the last few years, the government has taken a positive step — this process has either been completed or is nearing completion in several categories. Once the QCO is in effect, BIS standards will become applicable. Then, furniture exported to India as well as domestically manufactured furniture will need to comply with these standards.
Exporters from other countries can get BIS certification to ensure compliance. As per our information, inspecting authorities have been visiting major foreign suppliers to assess and certify them under BIS norms. When Indian suppliers are exporting to other countries, they have to adhere to foreign standards, because standards are governed by the way furniture is used in those countries. Similarly, today, India has created standards based on our country’s requirements and it is for everybody to comply with them.
Concerns have been raised in global forums that India’s furniture standards may pose limitations on design…
Godrej has played an active role in formulating these standards, along with 6-7 other domestic furniture players, including some MSMEs, and international players. I can say with confidence that the standards are not limiting in any way, except one — they require furniture to last at least 4-5 years — a fair and reasonable expectation for protecting the interest of customers. Based on that, tests for durability, load-bearing, and usage cycles have been defined, but there are no constraints on design or other creative aspects for any country.
Do you think India’s largely informal furniture sector, especially MSMEs, will struggle to become QCO-compliant? What kind of support can industry bodies or the government provide to help them comply?
MSMEs shouldn’t face major challenges in meeting the new standards. A key focus of the government and CII is ensuring easy, affordable access to testing facilities for all players. The industry, including MSMEs, is working collaboratively with authorities to address issues like lab availability and logistics. Recognising their scale and exposure, MSMEs have also been given a compliance timeline of additional six months. These steps aim to address their concerns so that they properly come onboard.
Did the furniture industry witness a consumption slowdown last year?
Let me break this into B2B (business-to-business) and B2C (business-to-consumer), as they behaved quite differently. Last year, B2B furniture saw strong tailwinds, driven by healthy space absorption — 7-8 million sq ft more than the previous year. In contrast, B2C faced a slowdown, particularly in the second half, which is the more critical half for business for everybody. This was largely due to challenges with disposable incomes among the middle class. As a result, the overall industry did not experience much growth in the second half. That said, the shift toward organised players continued, and Godrej managed to grow 12-14 per cent last year. Looking ahead, there’s positive anticipation. With under control, a stable macro environment, and a good monsoon forecast, demand in the B2C segment is expected to improve. The industry could see 4-5 per cent growth on a large base.
What kind of furniture are Indians buying furniture these days? How are they doing it?
The Indian furniture market is divided into premium and non-premium segments. The premium segment is fairly insulated from the variability of the economy. Premium buyers are increasingly seeking tech-integrated, lifestyle-supporting furniture — like beds with remote-controlled storage or sofas with charging ports. They also value personalisation, often working with professionals for home interiors. Godrej addresses this through component-based, modular solutions that can be reconfigured later, like its Upmods range. In the economy segment, customers typically buy single functional pieces. To serve them better, especially younger online shoppers, Godrej has strengthened its digital presence. From a historically offline model, it now delivers to 18,000 pin codes through online channels, ensuring wider access across India.
Online now accounts for 10 per cent of our B2C sales — it’s growing, but 90 per cent remains offline. Given India’s diversity, offline will continue to matter, and the path ahead is clearly omnichannel. As a division, we’re around Rs 3,800 crore in revenue. Of this, B2B products contribute roughly Rs 1,400 crore, B2C products about Rs 1,200 crore, and the balance comes from B2B projects, including interiors and audiovisual solutions.
How are furniture manufacturers responding to growing calls for sustainability, especially around timber sourcing?
Sustainability is only going to grow in importance, and we’re seeing strong national-level efforts, with active support from CII. Godrej has long championed this cause — 60-65 per cent of our product portfolio is now green certified, and 45 per cent of our division’s revenue last year came from such products.
That said, awareness is stronger in the B2B segment, where buyers demand sustainability certifications for furniture and interiors. In B2C, awareness is still evolving. While some evolved consumers do look for green credentials, it’s not yet widespread. We believe it’s our responsibility to raise awareness and ensure that sustainability becomes central to the buying decision, especially as we remain accountable to future generations.
