The India furniture market by commercial sector is anticipated to achieve a CAGR of 11.97% during the forecast period i.e., 2018-2023. The commercial sector is further sub-segmented into non contracting and contracting. The demand for furniture has been observed to majorly generate from northern and southern India.
The import duty on furniture was increased from 20% to 25% to boost domestic manufacturing. BIS Standards on modular furniture were published by BIS in 2022 to enhance standardization in furniture and ensure product safety.
- India’s Furniture market is currently valued at $ 32 Bn, accounting for 5% share in the world market.
- India has recently concluded India-Australia Economic Cooperation and Trade Agreement (ECTA) and India-UAE Comprehensive Economic Partnership Agreement (CEPA), providing zero-duty market access opportunities for India-made furniture to these global markets (No change in other content)
Few Key Reasons to invest in this sector:
- Logistics Infrastructure: Development of multimodal logistics parks (MMLP) across 35 nodes which will account for 60% of freight movement in the country and reduce freight cost per ton 4) Increasing Consumer Demand: 40% of India’s population will be living in urban areas by 2025 up from 31% in 2010 which will lead to demand surge for furniture products
- Availibility of Competitive and Skilled labor: India boasts of a rich heritage of unique craftsmenship, woodwork, carpentry & furniture with regions like Jodhpur emerging as demand centers for the local industry.