Why Make In India? – thelivingconcepts

Indian Furniture Market Outlook

2020 will be remembered as one of the most unique and distinctive periods in human history. The year is going to end soon and we can say with certainty that we have witnessed numerous life disturbing events and a massive negative impact on the global economy. The pandemic has given every nation a reason and opportunity to re-evaluate their trade deals with China, which is also under public scrutiny. The worlds manufacturing giant for the first time is losing its tag of preferred manufacturing hub since the early 90’s.

The Indian home furniture market is projected to reach $216.2 billion in 2021, witnessing an annual growth rate of 4.7% CAGR. A key segment of it, Seating and Sofas, is projected to reach $35.7 billion, representing 16% market share.

What makes India a good prospective for imports, as compared to China?

Growing cityscapes

Production channels

Online credibility

Global trends familiarity

Global trends familiarity

China will certainly face a labour force issue considering the average age of their working population.

Labour represents one of the main costs of manufacturing goods. And importers have watched China’s labour costs soar in recent decades, often growing by 10-15 percent annually. Low labour costs definitely give Indian manufacturers an advantage to establish themselves.

Mounting U.S. tariffs on Chinese goods over the past year have strengthened the case for India as a cost-effective manufacturing alternative. Importers of labour-intensive products are in the best position to realize cost savings by moving to India.

Continuous reform from government also eases logistics for businesses. It eliminates cumbersome processes and obstacles, reducing the time and cost needed to obtain construction permits, enabling post-clearance audits for cross-border trade.

The “3D's” – democracy, demography, and demand is certainly big factor to draw global attention to work with India.

If we take the example of China, the focus on new sectors has yielded high returns. China alone exports furniture worth US$ 350 billion. India definitely looks forward to grow as a global exporter and this especially merits attention in the furniture sector.

Earlier this year, before the Covid-19 pandemic led to a nationwide shutdown, Union Commerce Minister Piyush Goyal already indicated designation of resources to encourage leading furniture exporters. His bullishness and support to boost furniture exports from India is encouraging. The industry comprises of many different uses and segments; from traditional to contemporary, luxurious to mass-produced — the market scope is wide and large.

The furniture market certainly expects surging demands for the next 20 years. This sector alone has the potential to exceed exports of US$ 50 billion. India has abundant raw material, manpower, skills and thereby the potential to be price competitive in the global market. The government has been subsidizing the unorganised sector for long, which is proving to be counterproductive.

At Urban Living, our aim is to be among the top sofa manufacturers in India. We have an established track record in making, supplying and providing custom solutions. Whether considering covers, sofa frames or custom requirements, we work with local talent to procure quality sofas and fabric options.

Indian Furniture Market Outlook