Ranked as one of the top three most attractive investment destinations in the world, India is also one of the fastest growing economies in the world.
According to a study by the World Bank, India’s organised furniture industry is expected to grow 20% per annum over the next few years and is projected to cross US$ 32 billion by 2019. Online home décor market in India is projected to grow at a CAGR of 50.42% in revenue over the period 2014-2019. The Luxury Furniture Market is expected to garner $27.01 billion by 2020, registering a CAGR of 4.1% during the forecast period 2015-2020.
FDI in the Indian real estate sector and the government’s Housing-for-All by 2022 initiative and development of 100 smart cities to accommodate India’s growing urban population are some of the growth drivers for revival of the real estate and construction sector.
The anticipated increase in tourism, hospitality, retail and hospital sectors is also expected to spur furniture demand in the country. The rise in demand of residential realty is as huge as 20% and the home furniture market is expected to witness the fastest growth over the next five years, followed by the office and institutional segments.
The Asian market is estimated to be the biggest consumer of furniture and India holds a major pie, according to a World Bank study.
The FDI enterprise under Make in India has already resulted in a 60 per cent growth in inflows and it is this campaign of the government with the objective of high quality standard that is steadily attracting international capital and technological investment in India thus facilitating localised production.
Skilling and Employment Opportunities:
According to a National Skill Development Council (NSDC) report, India’s furniture and furnishings industry will need 11.3 million skilled workers by the year 2022. The Furniture & Fittings Skill Council (FFSC) is one of such Sector Skill Council of NSDC and they have unfurled a raft of training programmes and schemes toward meeting this demand without diluting the expected quality standards.
According to National Sample Survey Office’s (NSSO) 68th Round, 50% (1,070,681) of the total employment in furniture manufacturing is concentrated in the five states of Maharashtra, Gujarat, Bihar, Uttar Pradesh and West Bengal.
The imminent opportunities for “Make in India” products:
The “Make in India” campaign is well on its path to creating the nation into a haven for investment and a propeller for economic headway. On the threshold of major reforms and poised to become the third largest economy in the world by 2030, Make in India has announced a variety of initiatives which will facilitate the indigenous manufacturing of furniture and bring about ease of doing business.
In 2015, shipments of Indian-made furniture for the U.S. market rose 24% to $336 million. During the first half of 2016, shipments of $180 million, up 18% from the prior six month period in 2015, were on their way to eclipsing that growth for the full year.
Hence, with such positive and promising business possibilities, participants at MumbaiWood can look forward to capitalise on the opportunities the industry has to offer.