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Picture Courtesy:  THEHINDU

Context

The Ministry of Commerce and Industry announced the reopening of the application window for the Production-Linked Incentive (PLI) Scheme for White Goods (air conditioners and LED lights) from September 15 to October 14, 2025.  

What is the PLI Scheme for White Goods?

Origin: The Production-Linked Incentive (PLI) Scheme for White Goods, approved by the Union Cabinet in 2021, with a budgetary outlay of ₹6,238 crore, the scheme spans FY 2021-22 to FY 2028-29.

Objective: Promote local production of critical components, reduce reliance on imports, and position India as a global manufacturing hub.

Incentives: Financial incentives (4-6% of incremental sales) for companies meeting investment and production targets.

Eligibility: Open to both new applicants and existing beneficiaries seeking to expand investments.

What are White Goods?

White goods are large, durable home appliances used for routine domestic tasks like cooking, cleaning, and climate control.

The name comes from their traditional white enamel finish, though they now come in many colors.

Categories of White Goods

• Kitchen Appliances: Refrigerators, ovens, microwaves, dishwashers.
• Laundry Appliances: Washing machines, dryers.
• Climate Control Devices: Air conditioners, heaters, dehumidifiers, fans.
• Lighting: LED lights and their core components.

Features

• Durability: Built for long-term, heavy daily use.
• Energy Efficiency: Incorporate energy-saving technologies to reduce electricity consumption.
• Technological Integration: Smart appliances with IoT connectivity for remote monitoring.
• Versatility: Available in diverse sizes, finishes, and technologies.
• Aesthetic Appeal: Modern designs to complement home interiors.

Significance of the PLI Scheme for White Goods

Market Growth: Rising demand for ACs and LED lights, driven by urbanization, rising incomes, and energy-efficient technologies.

Industry Confidence: Success of earlier rounds, with ₹10,406 crore in committed investments, signals strong industry participation.

Component Manufacturing: Focus on producing components (e.g., compressors, LED chips) not currently manufactured in sufficient quantities in India.

Economic Goals: Aligns with India’s vision of becoming a global manufacturing hub and achieving self-reliance under Aatmanirbhar Bharat.

Challenges  

High Capital Costs: Setting up manufacturing units for advanced components requires significant investment, deterring smaller players.

Technology Gaps: Limited domestic expertise in producing complex components like AC compressors or LED chips.

Supply Chain Constraints: Dependence on imported raw materials and technologies persists.

Policy Execution: Delays in approvals, disbursements, or compliance monitoring could hinder progress.

Global Competition: Competing with established manufacturing hubs (e.g., China, South Korea) requires aggressive scaling and cost competitiveness.

Way Forward

Streamlined Processes: Simplify application and approval mechanisms to attract more investors.

Technology Transfer: Encourage partnerships with global firms for knowledge sharing in component manufacturing.

Skill Development: Invest in training programs to build a skilled workforce for advanced manufacturing.

R&D Incentives: Encourage innovation in energy-efficient and eco-friendly appliances through additional subsidies.

Export Promotion: Leverage trade agreements and PLI incentives to boost exports of Indian-made white goods.

Public-Private Collaboration: Strengthen partnerships to develop robust supply chains and reduce import dependency.

Conclusion

The reopened PLI Scheme for White Goods aims to boost domestic manufacturing, cut import dependence, and drive innovation for India’s self-reliance and global competitiveness.

Source: THEHINDU