Panasonic's Push for Enhanced PLI in Air Conditioner Sector

Panasonic India seeks a separate production-linked incentive (PLI) for the air conditioner segment, emphasizing high-value components like compressors and motors. The government's recent PLI scheme for non-semiconductor components is seen as a positive move, expected to boost domestic manufacturing and competitiveness in global markets.

Panasonic India is advocating for a distinct production-linked incentive (PLI) focusing on vital air conditioner components, such as compressors and motors. According to Manish Sharma, head of Panasonic India, this emphasis aligns with an industry-wide demand to enhance domestic manufacturing capacities.

The government's introduction of a PLI scheme targeting passive electronics components like capacitors and resistors has been welcomed by industry leaders, including Sharma, who believe it will elevate the sector's global competitiveness. This initiative, approved on March 28 for Rs 22,919 crore, marks a significant stride in promoting local manufacturing. Currently, India is reliant on imports for much of its electronics needs, highlighting the imperative to boost domestic production.

Sharma notes the notable progress made under existing PLI schemes for air conditioners and LED lights, approved in 2021, which are set to attract over Rs 10,000 crore in investments. This momentum has reduced the expected timeline to achieve substantial manufacturing output from six years to under four years. However, challenges remain, notably in the areas of heat exchangers and raw materials, where further advancements are necessary.

(With inputs from agencies.)