India: Furniture Industry Grow at Both Import and Export

person access_time4 10 October 2018

Wood Furniture imports have been a growing segment since 2 decades and the trend is continuing. Despite of make in India initiative, nothing big has turned in furniture making segment so far. Though the data of previous year underline the same where Furniture imports have noted an increase of 2.5% during FY 17-18. With a value increase Rs 11.5 crore
the total furniture import has touched Rs 473.10 crore in FY 2018 from 461.63 crore in its previous year. The rising trend has been continued two years later. Last year it had shown a huge boost of Rs 85 crore reaching to Rs 461.63 crore from Rs 376,68 crore which accounts nearly 20% rise. The above data has been revealed by DGCI&S, Kolkata.

According to ministry of commerce, Government of India the wooden furniture exports also have seen a boost of nearly $40 million (Rs 292.5 crore) from $ 449.66 million in the year 2016-17 to $ 533.10 million in the 2017-18. The press release issued by EPCH indicates that the exports of wooden handicrafts have registered a growth of 8.97% during the year 2017-18 with Rs. 4267.37 crore, however, during the first six months of 2018-19 [April – Sept.] exports of wooden handicrafts have registered a growth of 33.47% and stands at Rs. 2619 crore.

The industry conglomerates indicate that import of furniture is on the rise and it is going to stay for some time due to favourable market conditions. In recent years, the furniture market has attained a sizeable number to attract organized players, and more importantly there has been a steady growth in the imported furniture segment. Off late there are many brands that have arrived in India following rising demand for branded furniture. Although demand for local artisan furniture still exists, but the growth is in imports as consumers seek contemporary
designs. All these have made India a net importer of furniture and furnishing products. India majorly imports from China, Vietnam, Indonesia, Italy and Thailand.

Revival in real estate and hospitality sectors in India is expected to help push the furniture industry’s growth to many folds. India’s furniture imports are growing mainly because of lack of modernization and innovative design, dearth of skilled labor, limited market access and lack of quality control in the domestic furniture industry. These are also the reasons behind non-operation of furniture factories in India.

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