The furniture market has always been a reasonably growing aspect of the economy. This is because furniture needs abound in and out of the country and this need has to be met.
The furniture market in India however has been through a considerable amount of highs and lows. Having been characterized as a largely non-organized sector of the economy due to mostly handcrafted productions, the furniture industry in India has been known to make a seemingly marginal input to the country’s GDP.
However, all that is changing. As of the early 2000s, a negative growth of about 16.7% was recorded for the production of furniture and fixtures. Today, 27.1% growth is recorded in the Indian wood production industry for furniture and fixtures.
Furthermore, the industry is estimated to be worth over Rs 350 billion, 85 to 90% of which are attributed to the unorganized sector alone. Furniture manufacturers in India are taking the cue to dive into a very promising industry.
An important outlook towards this industry is to properly evaluate informing factors that may be beneficial in deciding and understanding the extent of the progressive furniture industry in India. We provide a few insights into the topic of the furniture manufacturing and exporting industry in India, below:
The Role Of India In Furniture Exports
The furniture export market is a booming sector for some countries due to their acquired stack in the industry all over the world. Countries like China, Germany, Japan, Mexico, and so forth are recognized for having a great output in the furniture export market and they enjoy demand.
However, other furniture markets like the Indian furniture exporters have recently increased their contending rate in the export industry, and for good reason.
Indian handcrafted furniture is envisioned to be a symbol of exotic art for most luxurious consumers is thereby increasing demand. Even more, Indian furniture is notable for being one of the strongest furniture products in the market due to their local wood strength only contending mainly with Germany and Mexico.
Nevertheless, India has always played a significant role in the furniture import and export industry, having been one of the high ranking countries in the importation of furniture from countries like China or Japan and now balancing out the percentage by an increased influx of manufacturers and investors creating a good average for exported furniture from India.
Furthermore, India has contributed to setting the pace for foreign investors in participating in furniture manufacturing and exports by making sustainable improvements in the legislation to allow for ease of business by minimizing entry-exit barriers for investors.
Liberalizing, the duty structure while generally reducing time and effort required for starting into this industry in comparison to other furniture exporting countries like China and Mexico.
Market Share of Furniture Exports from India
In recent times, India has recorded an upward surge in its furniture export sector. This growth can be largely attributed to the growth of the organized sector of the Indian furniture industry.
Generating estimated revenue of $216, 293 million in 2021 value for the organized sector furniture market in India, the market revenue is expected to grow annually by 4.71% between 2021 and 2025. While initially contributing up to just 10% of the market shares of the Indian furniture industry, the organized sector is estimated to gross up to 20% before 2024.
In addition, interactions with EU-based companies to tap into the demanding European furniture industry have helped the furniture export sector of India tremendously in raising the market shares.
India has come to enjoy high export demand in countries like the UK, Netherlands, France, Australia, and the USA, which makes up the largest percentage of furniture export from India at a rate of 39.2%.