Here’s how PM Modi will help white goods market to grow in India from to $30 bn

Consumer durable giants need to ramp up! The Indian consumer durable market is expected to reach $30 billion from the current level of $5.4 billion. This will happen provided our companies can achieve the level of penetration that is seen in other South East Asian countries.

A Deutsche Bank report bets big on PM Modi’s initiatives such as smart cities and Housing for All to ramp up demand for white goods in the country. "We forecast 8-12 per cent industry growth, with organised players outperforming," the report added.

According to the report, the consumer durable market in India is under-penetrated and is considerably small when compared to other South East Asian markets due to per capita basis. The report also suggested that this sector is on the brink of a cyclical upturn.

"If India is to reach anywhere close to the South East Asian average, the India market should be at least 50% of the size of the China market as against the current size of just 9%," the report stated.

It must be noted that the market continues to have low penetration—6% level for ACs, 9% and 21% for washing machine and refrigerators respectively.

On further break-up of the market, the report revealed that if India successfully raises its penetration level to the South Asian average, then the AC market could grow to $11.3 billion. On the other hand, washing machine and refrigerator markets could grow to $5.5 billion and $13.9 billion respectively.

The report has also noted that with the economic scenario of the country improving, the consumer sentiment is expected to improve, which in turn could result in a huge push to the sales of white goods in the country.