The consumer durable market in rural India will witness a 40% growth in the next fiscal, as against the current growth rate of 30%. The sudden enhancement is due to the change in lifestyle and higher disposable income of the rural populace. India which has fascinated the consumer durable market according to a study, “Rise of Consumer Durables in Rural India” undertaken by the Associated Chambers of Commerce and Industry of India.

Mr. Dilip Modi president of ASSOCHAM said, “Around 35% of the total sales of consumer durable items come from rural and semi urban markets, which will grow by 40 to 45 per cent in the near future. The consumer durable industry is growing at a fast pace and sees a strong demand in the coming period with the growing affordability of products as well as general buoyancy in the economy.”

The steadily growing market for consumer durables is estimated at 300 billion INR. It will reach INR 500 billion by 2015. The urban consumer durables market is becoming bigger at an annual rate in the range of 9 to 12%. On the other hand, the rural durables market is growing at 30 per cent annually. Some high growth categories within this segment include mobile phones, TVs and music systems.

India is the second fastest growing economy with a rate of more than 9 per cent. The large consumer class- about 70% of them resides in rural areas. Hence consumer durables have emerged as one of the fastest growing industries in the rural parts. The consumer durable industry is paying more attention to entice the rural community by offering their products and services in their local languages.

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Posted by Yogendra Oza on 1 January, 2011 11:48:30 AM IST #