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Why Consumer Durable Cos Are Emphasising On Make In India Products
With the goal of becoming a technologically driven nation, the initiative has also encouraged more research and development centres to be opened locally.
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Once upon a time, when one needed information, they sought the local library; made a whole day of it too, bundling up with snacks to get them through the day. However, those times have now become obsolete, with smartphones providing all the information one could ever need, at just a click of a button. Consumer durables in India have come a long way, with new appliances making life more and more convenient each day. A rise in disposable income and growing social influence in the middle class has given the segment, the ability to splurge. This was followed by an increase in the import of electronic goods to the US to $53 billion in 2018, according to a report by the Indian Brand Equity Foundation.
As per the report, the Indian Appliance and Consumer Electronics market (ACE) grew to Rs 2.05 trillion in 2017. Through the Government’s plans for rural electrification, the foundation also predicted an increased demand of refrigerators, air conditioners, and electric fans. This prediction has begun to ring true, with a recent National Family Health Survey (NHFS) report that shows penetration of TV reaching a record high of 66% and washing machines growing to 13.6%. The report also states that the consumer electronics market is expected to grow by 9% CAGR to reach Rs 3.15 trillion over the next three years.
By the end of 2013, India’s growth rate had fallen to its lowest in a decade, wherein foreign investors had begun pulling their operations out of the country due to its notoriously inconvenient business policies. Keeping this in mind, the government announced the “Make in India” programme in September 2014. Taking inspiration from the Swadeshi movement, the campaign aimed to increase manufacturing in the nation. Existing business policies went through a complete overhaul, thus prompting an influx of Foreign Direct Investments (FDIs).
For citizens of the nation, it was an opportunity to see their business dreams and visions come to fruition. Several start-ups mushroomed across the country, giving rise to innovation and increasing employment across industries. The number of manufacturing plants started to multiply, and thus, better infrastructure was set up in areas that were previously bereft of the same. This has also led to the country making its name as a robust manufacturing hub, as proven by a report by the Indian Cellular Association, mentioning that India is currently the second largest mobile phone producer in the world, after China. A report from the ET Bureau has also stated that currently, 65% of television sets sold in India are manufactured in the country.
The Government of India has increased liberalisation that has favoured foreign direct investments. Also, policies such as National Electronics Mission, digitisation of TVs and setting up of electronic hardware technology parks are expected to boost manufacturing in this sector. Even manufacturers on their part are willing to invest in India and increase their manufacturing base in the country.
As part of their efforts to make India a manufacturing stronghold, the government has also cut down on imports. With this move, foreign companies have resorted to opening manufacturing plants in the country to better serve the domestic market, thus increasing the employment rate. As part of their efforts, manufacturing processes are being made to adopt new automation technologies, leading to these processes becoming considerably easier. This push, led by the Internet of Things, is helping business processes become faster, better, and more streamlined.
With the goal of becoming a technologically driven nation, the initiative has also encouraged more research and development centres to be opened locally. This move is enabling people to become conscious of technology, not only in their personal lives, but also, in their business activities. Thus, optimising technology in businesses is today leading to a new legion of skilled personnel that are emerging in the workforce.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.