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How the Make in India Initiative Formed the Core of the Indian Furniture Industry

FDT Bureau

How the Make in India Initiative Formed the Core of the Indian Furniture Industry
Image credit: IAAH - It’s All About Home

India is one of the largest developing economies in the world. And as the country is poised to become the third-largest global economy by 2030, India is predicted to be the upcoming global hub for furniture. The rising share of millennials, increasing urbanization and the growing aspirations of the middle-class with rising disposable income have significantly contributed to a vibrant home furnishing market in India comprising manufacturers that sell furniture, textile and other home furnishing accessories. As per Invest India, the Indian furniture market was valued at USD 17.4 billion in FY21 and is predicted to reach USD 37.7 billion by 2026, growing at a CAGR of 13.37 per cent during 2020-2026.

 

The evolving role

Although the growth had been slightly obstructed during the COVID-19 pandemic, it eventually led to an increase in demand for affordable furniture within segments like ergonomic furniture, office furniture, living room seating and bedroom furniture. “The role of India immensely grew as China shut down all its activities during the pandemic. People from all around the world started looking into the Indian market,” informs Gobind Kapur, Director, Maison Du Luxe.

“The role of India immensely grew as China shut down all its activities during the pandemic. People from all around the world started looking into the Indian market.”



Gobind Kapur, Director, Maison Du Luxe

The disruptive trends during the pandemic altered lives and industries, and desperately created the need for multi-functional, convenient and customised furniture. “Since work from home is still a novel concept and consumption is high in India along with rising disposable income, there is a growing need for furniture,” confirms Gunjan Gupta, Founder IAAH – It’s All About Home. Furthermore, the abrupt halt slowed down international trade and nudged the Vocal for Local and Make in India campaigns.

“Since work from home is still a novel concept and consumption is high in India along with rising disposable income, there is a growing need for furniture.”



-Gunjan Gupta, Founder IAAH – It’s All About Home

Make in India: the core of the furniture market

Launched in September 2014, the Make in India initiative was the flagship scheme of the Modi Government that was established to propel the growth of the domestic manufacturing sector and attract foreign investment to various sectors in India, including the furniture industry. The initiative was strategized to increase the contribution of the manufacturing sector to the GDP to 25 per cent by 2022 and create 100 million additional manufacturing sector jobs in the economy by 2022, informs a report by Financial Express. “Vocal for Local caught up and expanded to become Local goes Global— Make in India for the world. It aimed to strengthen local manufacturing and supply chains. Our country has a diverse product range, plus a very strong heritage of craft. Even as the world is moving towards more mindful purchases, buying environmentally friendly products or supporting artisan livelihoods, India has to find ways of promoting its craft heritage to the world,” explains Shilpa Kalanjee Pastala, Managing Partner, Fusion Access.

Image credit: Fusion Access

It assisted in promoting investment opportunities by providing various incentives like tax benefits and subsidies to attract investors in the industry, which would likely increase the production of furniture in India. It further encouraged the adoption of modern technology and machinery in the furniture industry where the government launched several schemes and initiatives like the Technology Upgradation Fund Scheme (TUFS) that provides financial support to modernize machinery and equipment. The initiative also focuses on the skill development of the workforce, promotes exports of Indian furniture globally by providing various incentives and schemes, and streamlines the regulatory environment for the furniture industry in India, making it easier for companies to do business in India.

 

 


This article is a part of our exclusive article ‘Cover Story’ which is originally published in Furniture Design & Technology (FDT Magazine) April 2023 print issue. If you want to read the full article, please subscribe Furniture Design & Technology Magazine here: 

http://www.furnituredesignindia.com/subscrib 

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Furniture Design India and the magazine FURNITURE DESIGN & TECHNOLOGY (FDT magazine) are from the trusted 22-year-old media house of SURFACES REPORTER and PLY REPORTER.

FDT is a B2B monthly bilingual magazine from India that shares the pulse of the furniture business in India and connects the manufacturers, OEMS, product designers, architects, showrooms, designers and dealers.

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