Furniture

India Furnishing the World: 3X increase in India's furniture exports in April-January 2022-23 compared to the same period in 2013-14.

The India furniture market is anticipated to achieve a CAGR of 10.9% during 2023-28 to reach $32.7 Bn by 2026. 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 valued at $23.12 Bn in 2022, making it as the 5th largest producer and 4th largest consumer of furniture globally.
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: 51% of India’s population will be living in urban areas by 2047 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.

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Toys Manufacturing

White Goods

Furniture

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Reasons to Invest

Availability of Raw Material: India is the world’s 2nd largest producer of timber & 6th largest producer of natural rubber.

Large Furniture Ecosystem: Development of furniture hubs such as International Furniture Park in Tamil Nadu, upcoming International Furniture Clusters/Parks coming up in Karnataka, Madhya Pradesh, Uttar Pradesh and Andhra Pradesh.

Proximity to Global Markets: India enjoys better transit time advantage for East Coast and European harbors; Average turnaround time (TRT) for ships across major ports in India has significantly reduced to around 2.7 days: 30-50 % (import cargo) and 20-70 % (export cargo).

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Government Support

Central Government Schemes

Duty Drawback Scheme
Export Promotion Capital Goods scheme

State Incentives

Incentives by the state usually include:

Capital subsidy
Stamp duty exemption
Interest subsidy
Tax reimbursement
Electrical duty exemption

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The PDCs would be responsible for coming up with projects with all approvals and identifying issues to attract investment that would be brought to the attention of the EGoS.