The furniture and furnishings sector of India will require around 11.3 million experienced and skilled workers by the year 2022. This has been revealed by the National Skill Development Corporation.
It is expected that there will be a higher growth in the employment between the years 2017 to 2022 in comparison to the time period between 2013 and 2017. This is due to the changes in the consumer preferences as well as the penetration of the organized furnishing services in the tier 1 and tier 2 towns.
The share of the organized employment is all set to increase from 5 percent in the year 2013 to 13 percent by 2022. This is indicated by an analysis of the breakup of the workforce in the organized as well as unorganized segments.
The NSDC press release stated that the market is shifting towards the organized market segment. The demand for the furniture increased to 12 percent per year during the time period between 2007 and 2012. It increased to 15 percent in the year 2013.
Dilip Chenoy, the Managing Director and CEO of NSDC stated the following. He said that the government’s policy is biased towards the imports as it lets duty-free furniture import for the SEZs (Special Economic Zones) as well as STPs (Software Technology Parks of India). For the local manufacturers of furniture, the government imposed a sales tax of 14.5 percent. This way, he stated that the government’s policy does not support the local manufacturing. The local business will get help if the government revises this tax policy.
The report states that the customers prefer low maintenance, high end and quickly installable furniture products that come with customization options. There are simple and contemporary designs that are preferred over the complex, heavy and traditional furniture.
The employment in the furniture manufacturing is high in five states including Gujarat, Bihar, Maharashtra, West Bengal and Uttar Pradesh. Of these, 30 percent of the total workforce is in Maharashtra, UP and West Bengal.
