Urban India Spends Rs 60k Cr on Appliances in H1 2024: Report

New Delhi, Oct 10 (PTI) Urban India has purchased TVs and large appliances worth over Rs 60,000 crore in the first half of 2024 from offline channels, while rural India has reported sales of Rs 3,000 crore, according to a report.

India has emerged as "the Fastest Growing Market for Consumer Tech and Durables market" and this growth trajectory is underscored by a strong PMI (Purchasing Managers' Index) reading and declining inflation rates, according to a report from GfK.

"The middle class in India is set to outspend the upper class by 2030, with half of the world's population expected to belong to the middle class, predominantly driven by growth in Asia," it said.

Over rural India, it said, though it is small in purchase value, it has a higher population, and with the growth of infrastructure, consumer awareness and aspirations it is poised for growth in consumer tech and durables market.

"While rural India's share may appear lower at the surface, a closer analysis shows significant growth opportunities for the tech and durables industry," it said.

There is a "rise in disposable income", which is evident in the growing number of pucca (permanent) houses in rural areas and these structural improvements are facilitating higher adoption rates of tech and durable goods.

Highlighting the growing proliferation of retail networks, the report says over 20 outlets per 100 villages are directly involved in selling televisions and refrigerators.

"Categories like washing machines have a retail network of 15 outlets per 100 villages, and the surprising number comes for air conditioners with around half of that count for washing machine (7 outlets per 100 villages)," it said, adding that "this is a clear example of how the retail channel is proliferating in far rural areas in the country for the tech and durable sector".

Terming the rural markets as a growing opportunity, the Gfk report pointed out, as per the 2011 census, there are over 6 lakh villages in India, of which 10 per cent of them have populations exceeding 3,000, representing 42 per cent of the rural population.

"A recent NIQ-GfK study revealed that the first half of 2024 saw Rs 60,000 crore+ worth of business in urban India from TV and large appliances, including washing machines and refrigerators, through offline retail channels. Rural India reported Rs 3,000 crore in revenue from similar categories in these larger villages," it said.