PLI Scheme Boosts India's White Goods Manufacturing with Major Investments

The Production-Linked Incentive (PLI) Scheme for White Goods sees a major boost as 24 beneficiaries commit Rs3,516 crore in investments. This initiative, enhancing domestic manufacture of AC and LED components, is set to strengthen India’s position in the global supply chain, with substantial economic implications.

The Production-Linked Incentive (PLI) Scheme for White Goods has reached a pivotal milestone, welcoming 24 beneficiaries who have pledged substantial investments totaling Rs3,516 crore during its third application round, according to the Ministry of Commerce and Industry.

This initiative aims to escalate the domestic manufacturing of essential components for air conditioners and LED lights, reinforcing India's stature in the global supply chain.

In the third round, the government assessed 38 applications, provisionally selecting 18 new companies. These include 10 AC component manufacturers and 8 LED light manufacturers, collectively committing Rs2,299 crore. Furthermore, 6 existing beneficiaries are advancing to higher investment tiers, contributing an additional Rs1,217 crore.

Thirteen applications, including two from existing participants, are under further examination by the Committee of Experts. Another applicant withdrew from the scheme. To date, the PLI Scheme has attracted 84 companies, amassing Rs10,478 crore in committed investments, with expected production valued at Rs1,72,663 crore.

The scheme's influence is anticipated to significantly boost India's manufacturing prowess and propel economic growth in AC and LED industries by promoting the production of critical components such as compressors, heat exchangers, and LED chip packaging.

Launched in April 2021 with a budget of Rs6,238 crore, the scheme, spanning fiscal years 2021-22 to 2028-29, offers incentives ranging from 6% to 4% on incremental sales.

It aspires to amplify domestic value addition from 15-20% to 75-80%, nurturing a self-sufficient component ecosystem and diminishing import reliance.

The PLI Scheme is central to India's vision of establishing itself as a global manufacturing hub, aiming to become self-reliant and a critical supplier in the global white goods market landscape.

(With inputs from agencies.)