India - Malaysia Market Report

FURNITURE & DÉCOR DEMAND IN INDIA

Furniture Imports from Malaysia

Demand for furniture is growing exponentially in India and will continue to grow over the next decade as infrastructure expands and connects towns and cities as well as various government programs encourage building of new residential areas as well as the increasing number of office parks.

Overall Furniture Imports from Malaysia (Seats and Metal, Wood & Plastic Furniture for Offices & Homes)

2017-2018 2018-2019 2019-2020 2020-2021
Values in US$ Million 101.59 102.33 102.87 60.55

Source: Ministry of Commerce

Furniture Demand in India

  • Booming $3.49 bn Work from Home furniture market by 2026
  • $2 bn furniture rental industry estimated to touch $750-800 bn by 2030
  • Imports of furniture touched $545.69 mn in FY 2019-20
  • 60% of Indian furniture demand is for home furniture with the Door market expected to cross $2.8 bn by 2024
  • Billion dollar investments in infrastructure such as $6.82 bn in aviation by Government and private sector is pushing growth of institutional markets.
  • India’s modular kitchen market was $206 mn in 2018 and projected to grow at 27% CAGR (2019-24) to reach $862 mn by 2024
  • India accounts for nearly one-fifth of the world's imports of office furniture.
  • The $2.5 bn office furniture sector comprises ~20% total Indian furniture sales.

Liberalisation of Furniture Industry:

  • Imports of furniture were liberalized in April 1998
  • Importers in India require no license or prior permission to import furniture
  • Importers should have valid IEC (Import Export Code) issued by Directorate General of Foreign Trade (DGFT)
  • The Central Board of Excise and Customs (CBEC) has developed an 'integrated declaration' process providing importers and exporters a single point interface for customs clearance of import and export goods

Indian Furniture Imports from Malaysia (In US$ Thousand)

Product 2018 2019 2020
Swivel seats with variable height adjustments (excl. medical, surgical, dental or veterinary, & barbers' chairs) 11515 14284 15521
Wooden furniture (excl. office, kitchen, bedroom & seats) 27361 23815 9461
Wooden furniture for offices (excl. seats) 15488 11826 8583
Wooden furniture for bedrooms (excl. seats) 16396 16676 6200
Parts of furniture, n.e.s. (excl. seats & medical furniture) 4980 2922 4022
Upholstered seats, with wooden frames 5096 5967 3963
Wooden furniture for kitchens (excl. seats) 4232 5066 3920
Metal furniture for offices (excl. seats) 4275 3809 3735
Metal furniture (excl. seats & medical furniture) 2503 2088 1909
Parts of seats, n.e.s. 2778 2763 1786
Upholstered seats with metal frames 615 1195 1304
Seats, with wooden frames (excl. upholstered) 2294 3107 1255
Furniture of other materials, incl. cane, osier or similar 4954 3524 1219
Seats, n.e.s. 1916 2603 1168
Seats for aircraft 191 176 485
Mattresses, fitted with springs or stuffed or internally filled with any material 204 126 161
Furniture of plastics (excl. seats & medical furniture) 13 2 48
Operating tables, examination tables, and other medical, dental, surgical or veterinary furniture 64 2 43
Articles of bedding and similar, fitted with springs/stuffed 28 47 43
Seats, with metal frames 353 122 39
Seats, convertible into beds 67 58 38

Furniture Import tariff:

  • With the India-ASEAN FTA in place the duties for all types of metal, wood and plastic furniture for offices and homes are in the 0% to 5% range.

Shipping:

  • A majority of furniture movement takes place through the sea route and JNPT Mumbai accounts for about 39% of imports followed by ICD Tughlakabad (New Delhi) which account for 18% and about 11% of imports come through ICD Whitefield, Bengaluru.

Indian Décor Imports from Malaysia (In US$ Thousand)

Product 2018 2019 2020
Glassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar purposes 1104 591 913
Electric lamps and lighting fittings, n.e.s. 370 237 229
Parts of lamps and lighting fittings, illuminated signs and nameplates and the like, n.e.s. 13 33 218
Wooden frames for paintings, photographs, mirrors or similar 22 5 102
Wood marquetry and inlaid wood; caskets and cases for jewellery or cutlery, and similar articles, of wood; wooden articles of furniture 2 0 31

Total Import Tariffs:

As India has an FTA with ASEAN Countries, the tariffs range around ~0-5% as below:

  • Home Décor = 0-5%
  • Lighting & Light Fittings = 0-5%

DOING BUSINESS IN INDIA - MARKET ENTRY

Options for in-market representation include appointing agents and distributors; setting up branch/ liaison offices; setting up joint ventures and local subsidiaries as well as exploring cross-border business via eCommerce.

Manufacturing in India either for exports/re-exports, or specifically for the domestic markets can also be undertaken with ease in Government FDI norms for investing in SEZs or entry via single brand retail.

For complete details please visit: https://www.investindia.gov.in/setting-up-business-in-india

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