The Indian home improvement market is at a pivotal moment, with Budget 2025 and global trends setting the stage for accelerated growth, says Shyam Motwani, Executive VP & Business Head – Locks and Architectural Solutions at Godrej Enterprises Group.
The recent Budget 2025 announcement is set to give a significant boost to the Indian home improvement market. As businesses adapt to evolving market trends, it is crucial to understand how budgetary policies and global developments will shape industry strategies.
One of the key highlights of Budget 2025 is the revision of tax slabs, which increases the minimum exemption limit from ₹3 lakh to ₹4 lakh. Additionally, a rebate under Section 87A ensures that individuals earning up to ₹12 lakh are now exempt from taxation, with the rebate limit raised from ₹25,000 to ₹60,000.
The new tax regime introduces a revised structure to provide greater financial relief. Income up to ₹4 lakh is exempt from taxation. Earnings between ₹4 lakh and ₹8 lakh are taxed at 5 per cent, while those between ₹8 lakh and ₹12 lakh fall under the 10 per cent tax bracket. For income ranging from ₹12 lakh to ₹16 lakh, the tax rate is 15 per cent, increasing to 20 per cent for earnings between ₹16 lakh and ₹20 lakh. Individuals earning between ₹20 lakh and ₹24 lakh will be taxed at 25 per cent, while income above ₹24 lakh will be subject to a 30 per cent tax rate.
These measures are expected to provide consumers with greater disposable income, enabling them to save more and invest in home improvement activities. This is likely to drive demand in segments such as interior décor, home safety, and architectural solutions. With increased financial flexibility, homeowners are expected to prioritise high-quality, innovative products that enhance aesthetics and security. Additionally, long-term investments in home remodelling, smart home technology, and sustainable solutions are set to rise.
In recent years, India has witnessed a significant 24 per cent rise in the adoption of digital locks, driven by increasing awareness of advanced security solutions and the convenience of smart technology. Digital locks offer keyless entry, fingerprint authentication, and remote access, making them highly preferred among modern homeowners. Integrating these systems with smart home setups further enhances safety, making them a crucial component of contemporary home improvement.
The Indian smart lock market is projected to grow at a CAGR of 11.10 per cent from 2024 to 2032, fuelled by the rise of smart home technologies, increased smartphone usage, and the demand for seamless security solutions. As India continues to embrace digital advancements, smart locks are becoming an integral part of home security, offering real-time monitoring and alerts. The COVID-19 pandemic has also accelerated the adoption of contactless technologies, with digital locks gaining popularity for their touchless entry features. This shift towards digital solutions is expected to drive continued innovation and expansion in the home security sector.
The Indian architectural hardware market is experiencing rapid growth as consumers seek high-quality fixtures and fittings. The global architectural hardware market, valued at $15,960 million in 2018, is projected to reach $23,271 million by 2026, growing at a CAGR of 6.8 per cent. In India, increasing renovation activities, new commercial developments, and large-scale government infrastructure projects—such as airports, malls, and schools—are fuelling this growth.
Today’s consumers are more conscious of their living spaces and prefer technology-driven products that enhance convenience and aesthetics. This has led companies to develop home improvement solutions aligned with contemporary preferences. The demand for premium architectural fittings, such as door handles, hinges, locks, and glass hardware, is on the rise, with architects and interior designers playing a more significant role in decision-making. Modern homeowners are embracing minimalist and sleek architectural solutions, further driving market expansion.
The modular kitchen industry in India has seen exponential growth, driven by urbanisation, rising disposable incomes, and the increasing preference for modern kitchen spaces. The market is expected to reach USD 16.87 billion by 2030, growing at a CAGR of 24.36 per cent. Modular kitchens are favoured for their efficiency, convenience, and stylish designs, making them a popular choice among urban Indian households.
Homeowners now view kitchens as central spaces, leading to a surge in demand for luxury features such as magic corners, kitchen islands, and smart storage solutions. The integration of smart home systems within modular kitchens is further enhancing their appeal, offering a seamless and improved cooking experience. Additionally, sustainability is becoming a key factor, with consumers seeking eco-friendly materials and energy-efficient appliances.
Lifestyle changes, including the rise of remote work, have also influenced kitchen design preferences. With more people spending time at home, the demand for functional and aesthetically pleasing kitchens has grown. Companies are responding by offering innovative solutions that cater to evolving consumer needs, blending technology with convenience.
The Indian home improvement industry is undergoing a significant transformation, driven by urbanisation, increasing disposable incomes, and the growing demand for smart and sustainable living spaces. Consumers are investing in smart home systems, energy-efficient appliances, and eco-friendly materials to create homes that are both functional and future-ready.
Smart home technologies, including automated lighting, thermostats, security systems, and connected appliances, are gaining widespread popularity in India. These innovations offer enhanced convenience, energy efficiency, and security — key priorities for modern homeowners. The integration of these technologies into home improvement projects is expected to drive further market growth.
At Locks and Architectural Solutions, we are committed to staying ahead of the curve by continuously innovating and enhancing our product offerings. With R&D at our core, we are developing advanced smart and digital locks, sustainable architectural fittings, and cutting-edge kitchen solutions to meet the evolving needs of consumers. Our focus also includes strengthening our digital presence to ensure customers have access to the right information and support for informed decision-making. Additionally, we are investing in state-of-the-art manufacturing technologies to produce high-quality, cost-effective products that cater to modern living requirements.
The Indian home improvement market is at a pivotal moment, with Budget 2025 and global trends setting the stage for accelerated growth. As consumers seek smarter, safer, and more aesthetically pleasing homes, innovation will play a crucial role in shaping the industry’s future. Companies that prioritise customer-centric solutions, sustainability, and advanced technology will drive the next phase of growth, making homes not only more secure but also more intelligent and visually appealing.