India’s consumer durables market is expected to grow 8-10% annually to reach ₹3-3.25 lakh crore by 2030, driven by low household penetration, rising incomes, greater access to financing, nuclearisation of households and premiumisation, according to a report by the Confederation of Indian Industry (CII) and Boston Consulting Group (BCG).
According to the report the next phase of growth will depend on how much of this expanding market can be captured through domestic manufacturing. It estimates an incremental ₹40,000-50,000 crore opportunity for domestic value addition over the next five years. Current domestic value addition stands at around 50-55% and could rise to 65-70% by 2030 as component manufacturing capacity expands.
The opportunity is particularly significant in components where India remains dependent on imports. The report estimates that India imports around ₹19,400 crore worth of durable components annually across seven tracked HS codes, with RAC components accounting for nearly 80% of the value.
Beyond localisation, the report flagged exports and product development as key areas for the industry. India currently accounts for less than 1% of global consumer durables trade, while the global market is projected to reach $900-950 billion by 2030. Indian listed durables companies also invest less than 1% of revenue in R&D, compared with 1-4% among global peers.
The Indian consumer durables market, estimated at around ₹2.01 lakh crore in 2025, is expected to see the strongest growth in room air conditioners (RACs), followed by washing machines, refrigerators and televisions. RACs are projected to grow 10-12% annually between 2025 and 2030, taking the category to ₹70,000-75,000 crore.
The report said India remains significantly underpenetrated compared with other major Asian markets. Only around 10-15% of Indian households currently own an RAC, compared with 38% in Thailand and 80% in Malaysia. Washing machine penetration is around 20-22%, while refrigerator penetration is 45-50%. This leaves substantial headroom as household incomes rise.
The shift towards smaller households is also expected to support demand. Nearly seven in 10 Indian households are projected to be nuclear by 2030, compared with around six in 10 in 2023. At the same time, the share of affluent and elite households is expected to rise from around 21% in 2025 to 26% by 2030, supporting higher spending on durable goods.
“Companies and policymakers will need to focus on deeper component localisation, export-oriented manufacturing, stronger R&D and product innovation, greater use of GenAI and agentic AI, and a more predictable regulatory framework to turn domestic demand into a globally competitive manufacturing base,” said the report.