Economy

Appliance and consumer electronics market to grow at 11.7% CAGR by FY25 : Report

Meenakshi Verma Ambwani New Delhi | Updated on November 22, 2019 Published on November 22, 2019

India’s appliances and consumer electronics market size is expected to nearly double to ₹1.48 lakh crore growing at a CAGR of 11.7 per cent by FY25 from ₹76,400 crore in FY19 as per a report. The ACE market size includes residential air-conditioners, audio products, refrigerators, TVs and washing machines.

The report was released on Friday by Consumer Electronics and Appliances Manufacturers Association (CEAMA) and Frost & Sullivan.

Despite the ongoing economic slowdown, the report points out that low penetration levels of most ACE categories, improvement in infrastructure especially electrification in rural regions and massive wave of urbanisation among other factors will drive this growth.

“With the rise in purchase of ACE products and favourable government initiatives like Make in India and the National Policy on Electronics, India can transform itself into global consumer electronics manufacturing hub. The domestic value addition for the ACE products under scope stands at 34 per cent in FY19 and is likely to grow to 54 per cent by FY25,” the report added.

CEAMA has urged the government to calibrate import duty on select components such as main door panel (refrigerators), mechanical assembly/gearbox (washing machines) and speakers (television). At the same time, it has recommended reduction in duty on inputs for parts or components that are made in India to make the components more cost competitive.

“Devise methodologies to counter existing FTAs by building mechanism to check country of origin and via non-tariff barriers,” the apex industry body stated.

The industry has been urging the government to reduce GST on air-conditioners and TVs with screen size greater than 32 inches for some time now

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Published on November 22, 2019
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