THE IMPACT OF GOVERNMENT POLICIES AND FOREIGN DIRECT INVESTMENT ON THE GROWTH DYNAMICS OF THE INDIAN CONSUMER DURABLES MARKET: A COMPREHENSIVE ANALYSIS

Abstract

The present research aims to examine the effects of technical improvements, FDI, and government regulations on the growth dynamics of the consumer durables industry in India. Through an examination of current patterns, market division, output capacities, and the function of foreign direct investment, the study seeks to provide a thorough grasp of the industry's share of India's GDP and the forces influencing consumer demand. The results show that higher FDI inflows and supportive government policies greatly accelerate market expansion, while technical developments also further improve consumer preferences. Raising disposable incomes and evolving lifestyles appear as crucial factors influencing consumer demand, and the industry's division into brown and white items impacts the allocation of market share among major competitors. The research uses regression analysis to find important correlations between these factors, emphasizing how innovation, e-commerce, and government regulations work together to create a strong market environment. The enhancement of market dynamics via trade policies and the Production-Linked Incentive (PLI) Scheme highlights the need to implement strategic policies. To maintain development in the consumer durables industry, the report closes with recommendations for bolstering regulatory frameworks, encouraging foreign direct investment (FDI), and funding technical innovation. Policymakers, business stakeholders, and investors who want to take advantage of new possibilities and solve problems in an ever-changing market need to know these insights. Because of the study's thorough methodology, it is possible to find strategic avenues for future growth and get a helpful foundation for comprehending the many impacts on the Indian consumer durables industry.