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Indian Consumer Durables Lag Global Peers in R&D Spending, Hampering Tech Leadership
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CNBC TV18•24-09-2026, 16:24
Indian Consumer Durables Lag Global Peers in R&D Spending, Hampering Tech Leadership
- •Indian consumer durables companies invest less than 1% of revenue in R&D, significantly lower than global peers' 1-4%, according to a BCG-CII report.
- •This R&D gap limits India's shift from manufacturing scale to technology leadership, despite the market projected to reach ’3 lakh crore-’3.25 lakh crore by 2030.
- •Deeper localization of critical components is crucial for the next growth phase, with current bill-of-materials localization ranging from 25% to 70% across categories.
- •Import dependence for components stems from barriers like technology access (e.g., AC compressors) or lack of scale (e.g., washing-machine motors), requiring varied solutions.
- •The report recommends strengthening R&D, building export scale, creating a predictable regulatory roadmap, and leveraging GenAI/agentic AI to boost productivity and competitiveness.
Key Questions Answered
India's top 10-plus listed consumer durables companies invest less than 1% of their revenue in research and development, which lags behind global peers who spend between 1% and 4% on R&D.
The Indian consumer durables market is projected to reach between ₹3 lakh crore and ₹3.25 lakh crore by 2030, growing at an annual rate of 8% to 10%.
Current bill-of-materials (BOM) localization ranges from around 25% to 70% across major categories, with televisions and air conditioners at the lower end and refrigerators and washing machines at the higher end.
