The Covid situation prompted India to take furniture manufacturing locally in more serious manner. The thrust on ‘vocal for local’ and newly offered PLI schemes by government are adding support to the domestic furniture manufacturing growth. Benefitted directly from the policy changes and developments, the wood panel industry, laminate sector, hardware and Aluminium industry and furniture industry is gaining confidence to expand with product portfolios. With rise of 5 % duty on imported furniture, and added hassles on imports domestic furniture makers are witnessing more favourable environment.
The initiative taken by the government after COVID-19 pandemic like “SELF RELIANT INDIA” helping the industry by prompting people to use domestically manufactured goods. The government of India is also working fast forwardly for setting up three to four furniture clusters near ports that are also close to the wood producing areas.
India imports furniture nearly worth Rs 4500 crore ($700 million) every year. The furniture manufacturing observed a grater moral boost that reducing the reliance on China despite the fact that manufacturing in China comes cheaper by 40%. Due to higher duties, the domestic players feel, are likely to have many entrepreneurs into furniture manufacturing and build stronger local brands. With a strong competition from Vietnam and many companies moving from China to Vietnam having free import opportunity and availability of existing supply chain supported by the local government facilities. But, the journey for Indian furniture manufacturers is not going to be all smooth. Despite that, the Indian government is trying to facilitate better avenues for domestic as well as overseas players who are willing to be a part of ‘Atmanirbhar Bharat’ and ‘Vocal for local’.
The government initiatives to boost manufacturing in the country are moving towards right direction. To a positive note on an average across the country overall capacity utilisation in manufacturing has risen to 65% compared to 61.5% in Q4 previous year, indicates a survey conducted by TOI. It is evident in the recent statement given by the government, as addressing the Board of Trade (BoT) recently the Commerce & Industry minister Mr Pyush Goyal said that India identified 24 sectors that can boost manufacturing worth Rs 20 lakh crore ($266 bn) annual manufacturing.
Among those 24 sectors also includes furniture manufacturing to which the government is intended to facilitate more opportunity by easing the imports of logs and sawn wood. The furniture manufacturers say that with increasing domestic procurement, manufacturers would also have the capital to increase their consumer base by putting up more shops or fulfillment centres. They also say that the government has to make the production cheaper along with imposing greater restriction on import of finished goods and easing up importing logs and lumbers, because maximum manpower utilisation happens in converting the raw material to finished goods.