The consumer durable market is set to grow by up to 45 per cent in rural and semi-urban India in the next fiscal, thanks to the changing lifestyle and higher disposable income among the rural people, as per a study by Assocham.
According to a study 'Rise of Consumer Durables in Rural India' by the industry body, the rural durables market is growing at 30 per cent annually while the urban consumer durables market is growing at 9 to 12 per cent every year.
"Around 35 per cent 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," Assocham President Dilip Modi said in a statement.
The study said the total size for the consumer durables is estimated at Rs 30,000 crore and is expected to reach Rs 50,000 crore by 2015 with mobile phones, TVs (LEDs) and music systems (IPODs) among the growth drivers.
"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," he said.
The study said that with a nearly 70 per cent of consumer class in rural India, consumer durables have emerged as one of the fastest growing industries in India especially in the rural areas.
"Now the consumer durable industry is paying more attention to attract rural community by promoting their products and services in their local languages," it said.
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The study said in the coming five years, there will be a significant improvement in rural infrastructure coupled with agriculture reforms already under way.
"By this the industry expects rural market to reach inflexion point. This built up will lead to an explosion in demand the way it happened in the urban markets in the mid 90s," the study.