The growth of the export industry has been phenomenal this
year. For the first time, India is likely to clock out the current fiscal with
$410 billion worth of exports, as announced by the Commerce and Industry
Minister, Piyush Goyal. The seeming possibility of achieving this can be
attributed to many factors, the foremost being financial incentives to the
export industry. These incentives have been in the form of export subsidies,
duty exemption, duty remissions, low-cost loans, and many such financial guarantees.
Such incentives given by the Government have encouraged manufacturers to export
their units/machines globally.
In the recent past, the Indian Government has been
encouraging exports by announcing policies and incentives that are in line with
“Make in India” (aimed that transforming India into a manufacturing major) and
“Atmanirbhar Bharat” (aimed at promoting self-sufficiency) programmes.
These programmes have also empowered local industries and
communities. Mainly because of the pandemic, there has been a massive rise in
demand from the manufacturing industry, focusing on local suppliers to source
materials instead of importing them. Global manufacturing companies such as
Biesse India have been sourcing 64% of their raw materials/components and in turn,
developing their businesses. Local suppliers identified the demand from MNCs
(Multi-National Companies) and Indian companies. By recognising the market
through their customers and partners, the suppliers raised their benchmarks in
technology, process, and practices to their international counterparts by
maintaining the quality of the product. Result? It consecutively helped boost
local industries to expand their business.
Such expansions also lead to an increased demand for
adequate resources and the hiring of the right talent from a vast pool. Giving
a chance to local communities to come forward and apply for a relevant job
basis their skills and learning eventually puts the power of spending in human
hands. Such scaling and diversification enable companies to innovate
frequently.
During the first phase of the lockdown, the majority of the
sectors were not functioning although when the restrictions eased down, the
same sectors saw a tremendous surge in demand which eventually supported the
revival. It is safe to say that the impact has been evident to the point where
today, the supply is less than the demand.
When it comes to the woodworking sector, there has been a
rising demand for woodworking machinery, which is largely driven by growth in
Real Estate, Home & Office Furniture and Travel & Tourism. In the real
estate sector, all the projects that were held up have now resumed their work
and are in the process of completion. Another interesting observation has been
the home furnishing segment, which has given companies a new area to explore
and manufacture relevant products. With many still opting for work-from-home,
this has opened a whole new vertical for the furniture industry. People are now
keen to upgrade their homes for a comfortable WFH setup. Also, rapidly
increasing urbanization, a large share of the younger population and rising
aspirations of middle-class society has contributed to a vibrant home
furnishing market in India. The home furnishing segment has grown multi-fold as
people with 15-20-year-old homes are renovating with a modern look that is
serving the home-office segment.
The Indian furniture market is now more customer-friendly
and moving as per their preference and supplying readymade, branded furniture
with low maintenance, quickly installable and customisable options. With the
rapidly growing and transforming the retail sector, it is expected that large
retailers will continue to expand their presence, leading to consolidation in
furniture retailing in urban markets. The Indian furniture manufacturing sector
mainly meets domestic demand, yet India’s imports are growing at a rapid pace
as the demand is far more than the local supply. Modernization of Wood Working
sector with high productivity advanced machinery & technology is bound to
facilitate the much-needed growth of this sector.
The wooden working segment has also shown high employment
intensity which stands at 3.59%, second only to textiles. Considering the
rapidly increasing demand for furniture and the high employment generation
promise that it holds, is a key potential segment to be watched for. Courtesy: www.timesofindia.indiatimes.com
