'there's A Huge Opportunity For...': Nikhil Kamath Points To A Quiet Goldmine For Indian Companies

As India’s households walk astir a 3rd of their budgets connected nutrient and basics, Zerodha co-founder Nikhil Kamath sees untapped golden successful what they don’t bargain often—durables that last.

In a caller station connected X, Kamath wrote, “If 1 were to specify a durable bully arsenic thing that lasts much than 3 years, past location is simply a immense opportunity for homegrown Indian brands to tie world interest, particularly arsenic a antecedently globalising world gets much protectionist.”

He’s backing a bold call: Indian companies could triumph globally by focusing connected value furniture, jewellery and watches, lighting, and luggage. Kamath classed them successful that bid of promise, urging Indian manufacturers to target long-cycle equipment wherever branding and craftsmanship matter—and tin travel.

His optimism comes moreover arsenic information from nan Household Consumption Expenditure Survey 2022–23 reveals conscionable really small Indian households presently allocate to durable goods—just 7% of full spending, some successful agrarian and municipality areas.

In agrarian India, 37% of family expenses still spell to basal nutrient items. In cities, that drops to 29%, but municipality families walk much connected carrier (9%), rent and taxes (7%), and acquisition (6%), creating a bigger excavation of discretionary spend.

Yet, while various expenses (including entertainment) timepiece successful astatine 6–7%, and user services and location furnishings hover astir 5–6%, Kamath is betting that arsenic incomes emergence and tastes evolve, this portion could displacement toward better-made, longer-lasting Indian products.

And there’s different crisp separator successful nan data: complete 13–14% of family budgets still spell toward “unhealthy consumption,” including tobacco, intoxicants, and excess discretionary treats. It’s a wake-up call—not conscionable for policymakers, but for brands building sustainable business models.

The rural-urban disagreement is pronounced. Urban households walk much on:

• Processed foods (11% vs 10%)
• Transport (9% vs 8%)
• Education (6% vs 3%)
• Rent (7% vs 1%)

But erstwhile it comes to durables, nan communicative converges. Both agrarian and municipality households give 7% of their budgets to them, showing a nationwide plateau—one Kamath believes is ripe for disruption.

As nan world waste and acquisition ambiance becomes much inward-looking, India’s opportunity, he argues, lies successful exporting taste superior done beautifully made goods. The family fund whitethorn beryllium tight, but nan agelong crippled is wide open.

Published on: Apr 23, 2025 3:12 PM IST