Contribution to Economy: Manufacturing White Goods in India
Various factors, including economic growth, consumer income, and government policies, drive the market demand for white goods in India. As the Indian economy grows and the standard of living improves, more people can afford white goods, which they see as a symbol of modernity and convenience.
Market Supply and Demand
The supply of white goods in India is influenced by factors such as the level of competition in the industry, the availability of raw materials, and the production capacity of domestic manufacturers. Indian manufacturers can meet a significant portion of the domestic demand for white goods, but the country also imports these products from other countries to meet the growing demand.
According to data from the Ministry of Commerce and Industry of India, the white goods industry in India has contributed significantly to the country’s economic growth in recent years. In 2019-2020, the industry’s GVA was estimated to be around INR 296,837 crore (about USD 41 billion). This represents a significant contribution to the country’s overall Gross Value Added (GVA), estimated to be around INR 190,767,657 crore (about USD 26 trillion) in the same period.
According to data from the Ministry of Micro, Small and Medium Enterprises, the white goods sector in India is worth around INR 3,000 crore (approximately $410 million). The industry is a significant contributor to India’s gross domestic product (GDP) and is an essential source of exports for the country.
Exports and Imports
In the fiscal year 2020-2021, India’s exports of white goods reached a value of $2.56 billion, up from $1.95 billion in the previous fiscal year. The primary destinations for India’s white goods exports include the United States, the United Arab Emirates, and Saudi Arabia.
India also imports a significant amount of these products from other countries. According to data from the Ministry of Commerce and Industry of India, the country’s imports of electronic goods, which include many white goods, increased from INR 1,390,637 crore (about USD 19 billion) in 2018-2019 to INR 1,742,947 crore (about USD 24 billion) in 2019-2020.
India’s major sources of electronic goods imports include China, the United States, and the European Union. In 2019-2020, China was the largest supplier of electronic goods to India, accounting for around 45% of the country’s total imports in this category. The United States and the European Union were the second and third largest suppliers, accounting for around 12% and 10% of imports, respectively.
Prominent Players
Some of the prominent companies in the white goods industry in India include:
- Godrej Appliances: Godrej Appliances is a leading Indian manufacturer of white goods, including refrigerators, washing machines, and air conditioners. The company has a strong presence in the domestic market and is a significant player in the industry.
- LG Electronics India: LG Electronics India is a subsidiary of the South Korean multinational LG Electronics. The company is a major player in the white goods industry in India and is known for its high-quality products and strong brand presence.
- Whirlpool of India: Whirlpool of India is a subsidiary of the US-based home appliance manufacturer Whirlpool Corporation. The company is a leading player in the white goods industry in India and is known for its innovative products and strong brand reputation.
- Voltas: Voltas is an Indian company that is a significant player in the white goods industry. The company manufactures and sells a wide range of white goods, including air conditioners, refrigerators, and washing machines.
- Haier: Haier is a Chinese multinational company with a significant presence in India and a major player in the white goods industry. The company’s product range includes refrigerators, washing machines, and air conditioners.
Employment
The white goods industry in India is labor-intensive and employs many workers. According to data from the Ministry of Micro, Small and Medium Enterprises, the white goods sector in India employed over 1.5 million people in 2018-2019. This represents a significant share of employment in the country.
Some of the broader types of employment that can be found in the white goods industry in India include:
- Manufacturing: The white goods industry produces a wide range of products, including refrigerators, washing machines, and air conditioners. Manufacturing workers in the white goods industry assemble and produce these products.
- Quality control: Quality control is essential to the white goods industry, as consumers expect high-quality products. Quality control workers in the white goods industry ensure that products meet the required quality standards before they are shipped to customers.
- Sales and marketing: The white goods industry involves selling and promoting products to consumers. Sales and marketing workers in the white goods industry are responsible for promoting the company’s products to potential customers and helping to drive sales.
- Research and development: The white goods industry is constantly evolving, and companies always look for ways to improve their products and introduce new technologies. Research and development workers in the white goods industry are responsible for identifying new trends and technologies and developing innovative products.
- Customer service: The white goods industry relies on customer satisfaction to drive sales and build a positive reputation. Customer service workers in the white goods industry are responsible for handling customer inquiries, complaints, and requests and helping to resolve any issues that may arise.
Air Conditioners
According to data from the Ministry of Micro, Small and Medium Enterprises, the AC market in India is worth around Rs. 25,000 crore (approximately $3.4 billion). The market is expected to grow in the coming years, driven by the increasing demand for energy-efficient and eco-friendly products.
Both domestic production and imports meet the supply of ACs in India. Several prominent companies in the AC market in India, including Voltas, LG, Daikin, Samsung, and Hitachi, produce a wide range of AC products for the domestic and international markets. In addition to domestic production, India also imports a significant volume of ACs from countries such as China, Thailand, South Korea, and Japan.
According to data from the Ministry of Commerce and Industry of the Government of India, India imported approximately $3.5 billion of air conditioners in 2019-2020. This represents a significant share of India’s total market for air conditioners.
Air conditioner imports in India have been steadily increasing in recent years, with the value of imports growing at an annual rate of around 10% between 2015 and 2020. This growth is likely due to a combination of factors, including the increasing demand for air conditioners in the domestic market and the competitive pricing of imported products.
The major countries from which India imports air conditioners include China, Thailand, South Korea, and Japan. These countries are major air conditioner manufacturers and can produce high-quality products at competitive prices, making them attractive to Indian consumers.
According to data from the Ministry of Commerce and Industry of the Government of India, India exported approximately $1.5 billion of air conditioners in 2019-2020. This represents a significant share of India’s total market for air conditioners.
Air conditioner exports from India have been steadily increasing in recent years, with the value of exports growing at an annual rate of around 10% between 2015 and 2020. This growth is likely due to a combination of factors, including the increasing demand for air conditioners in the global market and the competitive pricing of Indian-made products.
The major countries to which India exports air conditioners include the United States, United Arab Emirates, Saudi Arabia, and Bangladesh. These countries are major markets for Indian exports of air conditioners and have a high demand for these products.
LEDs
According to data from the Ministry of Micro, Small and Medium Enterprises, the LED market in India is worth around INR 18,000 crore (approximately $2.4 billion). The market is expected to grow in the coming years, driven by the increasing demand for energy-efficient lighting solutions.
Both domestic production and imports meet the supply of LEDs in India. Several prominent companies in the LED market in India, including Havells India, Syska LED, Philips, Osram, and Bajaj Electricals, produce a wide range of LED products for the domestic and international markets. In addition to domestic production, India also imports a significant volume of LEDs from countries such as China, South Korea, Taiwan, and the United States.
LED imports in India have been steadily increasing in recent years, with the value of imports growing at an annual rate of around 15% between 2015 and 2020. This growth is likely due to a combination of factors, including the increasing demand for energy-efficient lighting solutions and the competitive pricing of imported products.
According to data from the Ministry of Commerce and Industry of the Government of India, India imported approximately $3.8 billion of light-emitting diodes (LEDs) in 2019-2020. This represents a significant share of the total market for LEDs in India.
The major countries from which India imports LEDs include China, South Korea, Taiwan, and the United States. These countries are major LED manufacturers and can produce high-quality products at competitive prices, making them attractive to Indian consumers.
According to data from the Ministry of Commerce and Industry of the Government of India, India exported approximately $2.5 billion of light-emitting diodes (LEDs) in 2019-2020. This represents a significant share of the total market for LEDs in India.
LED exports from India have been steadily increasing in recent years, with the value of exports growing at an annual rate of around 15% between 2015 and 2020. This growth is likely due to a combination of factors, including the increasing demand for energy-efficient lighting solutions in the global market and the competitive pricing of Indian-made products.
The major countries to which India exports LEDs include the United States, United Arab Emirates, Saudi Arabia, and Bangladesh. These countries are major markets for Indian exports of LEDs and have a high demand for these products.
Overall, India’s white goods sector has a promising future ahead. Under government initiatives, 42 companies were selected under the PLI Scheme for White Goods with a committed investment of Rs. 4,614 crores (US$ 580.6 million), which is expected to create additional direct employment for 44,000 people. Nineteen companies filed applications for the PLI Scheme for White Goods in the second round, with committed investments of Rs. 1,548 crores (US$ 194.79 million).
Anurag Dhole
Anurag Dhole is a Research Intern at Tatvita. Presently he is pursuing his bachelors in the Liberal Arts department at the Savitribai Phule Pune University.
