Furniture

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.