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Production Linked Incentive (PLI) Scheme for White Goods

10th July, 2024 Economy

Production Linked Incentive (PLI) Scheme for White Goods

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  • The Government has reopened the application window for the Production Linked Incentive (PLI) scheme for white goods.


  • The Commerce and Industry Ministry attributes the reopening to the growth in market and confidence stemming from local manufacturing of key components for air conditioners and LED lights in India.
  • The government has decided to switch from an annual to a quarterly system for incentive payouts under PLIWG.
  • This change aims to improve liquidity, enhance working capital management, and boost operational efficiency for the beneficiaries.

ALL YOU NEED TO KNOW ABOUT PLI Scheme: https://www.iasgyan.in/blogs/the-pli-scheme-all-you-need-to-know

WHITE GOODS AND PLI SCHEME: https://www.iasgyan.in/daily-current-affairs/white-goods-and-pli-scheme

What are White Goods?

  • The term “white goods” primarily refers to large domestic appliances used for routine chores, usually in the kitchen or laundry. It encompasses a broad range of products, like refrigerators, washing machines, dryers, and dishwashers.
  • Typically, these products are durable goods intended to last for several years.
  • Originally, the term referred to these products being ‘white’ in colour to distinguish these from brown goods, which refer to entertainment electronics like televisions and stereos.

Challenges in the White Goods Industry:

  • Increasing raw material costs pose a significant challenge.
  • Strict environmental regulations require compliance measures.
  • Intense competition within the market adds pressure on profitability.

Opportunities for Growth:

  • Rising trend towards smart homes and increasing disposable incomes create opportunities for expansion.
  • Energy-efficient appliances are in demand, driven by environmental awareness and regulatory incentives.

Expansion into Commercial Sector:

  • White goods industry is tapping into the commercial sector with products like industrial refrigerators, high-capacity washing machines, and commercial ovens.
  • This diversification opens new revenue streams and meets the higher demands of businesses.

Technological Advancements:

  • Smart appliances with features such as touch controls, AI functionalities, and internet connectivity enhance convenience and energy efficiency.
  • Integration into smart home ecosystems enhances market relevance and expands consumer base.

Logistical Impact:

  • Innovations in logistics improve efficiency in manufacturing and distribution processes.
  • Real-time monitoring and control of energy consumption further enhance operational effectiveness.

Way Ahead for White Goods Industry:


  • Focus on R&D for energy-efficient and smart appliances with IoT and AI integration.


  • Adopt eco-friendly manufacturing and materials, comply with environmental regulations.

Market Expansion:

  • Enter commercial sectors with specialized products, explore new markets.

Customer Focus:

  • Tailor products to meet changing consumer preferences, promote benefits of new technologies.


  • Collaborate with tech firms and government initiatives to drive innovation and growth.


Q. Explain the role of the Production Linked Incentive (PLI) Scheme in enhancing industrial competitiveness in India. Discuss its impact on key sectors such as electronics, pharmaceuticals, and manufacturing. Highlight challenges in its implementation and suggest measures to optimize its effectiveness.