Chennai: The domestic value addition of appliances and consumer electronic (ACE) products like air-conditioners, audio, refrigerators, TVs, and washing machines is likely to grow to 54 per cent by FY25, finds an industry body.
The Consumer Electronics and Appliances Manufacturers Association (Ceama) finds that domestic value addition stood at 34 per cent in FY19.
With the rise in purchase of the products and favourable government initiatives like ‘Make in India’ and the National Policy on Electronics, India can transform itself into a global consumer electronics manufacturing hub, the Ceama says “Indian consumers are becoming more aware and aspirational. They now want to own best quality appliances and electronics. This has given a boost and offers immense growth opportunities to the ACE sector. It can become one of the leading employment generators in the country. The industry has capabilities to become one of the biggest exporters as well. It is imperative that there is an enhanced public-private collaboration to further grow the sector,” Ajay Prakash Sawhney, Secretary, the Ministry of Electronics and Information Technology, said,
The overall market size of the top five categories of appliances and consumer electronics is Rs 76,400 crore in FY19 and the market is estimated to grow at compounded annual growth rate (CAGR) of 11.7 per cent till FY25. Going ahead, the market is expected to see acceleration in growth ignited by surging rural consumption, reducing replacement cycles, increasing penetration of retail, a wide choice of brands and products at various price points.