Why are Indian consumers buying appliances from US companies?
The Indian consumer, who is usually reluctant to buy US appliances, is buying them for the convenience of purchasing them in India, where the price is lower.
The US is the third largest seller of household appliances in the world, behind China and Russia, and the country is expected to overtake them as the world’s biggest exporter of appliances in 2021.
In India, the number of appliances sold has increased in the past decade.
In 2016, Indian households purchased 8.3 million appliances worth US$2.8 billion, which was 11% more than the previous year.
The Indian government has been keen to sell its products in the US, especially to the US military, to counter US influence in the region.
The current administration of US President Donald Trump has taken an aggressive stance towards China, which is one of the biggest buyers of Indian appliances.
Chinese President Xi Jinping has also repeatedly questioned India’s military aid.
“India has been making great strides in making sure our military’s interests are safeguarded, and this is something we cannot allow to be taken for granted,” a senior Indian defence official told Reuters.
In May, the Indian government agreed to buy 18,000 Boeing F-18 fighter jets from the US.
The defence ministry has also signed a memorandum of understanding with US defence firm Boeing to buy Indian-made jet engines.
The agreements are expected to be signed in the coming days.
The first two contracts will cover 10-20 years, the second is expected in 2023, and a third in 2026.
“We have already started negotiations for the final two contracts, which will cover the delivery of the engines in 2019 and 2020,” an Indian defence ministry official told reporters on Tuesday.