Indian Economy News

Five Companies Selected Under PLI White Goods Scheme: Production to Reach US$ 937 million

India’s Production-Linked Incentive (PLI) scheme for White Goods is constantly encouraging local production and more streamlined supply chains. In the fourth round, five companies have been shortlisted provisionally, promising an investment of Rs. 863 crore (US$ 95.89 million) in the production of critical components of Air Conditioners. These five companies, in total, are expected to achieve a production value of Rs. 8,337.24 crore (US$ 937 million) and generate around 1,799 additional direct jobs by FY28. With all 85 companies selected under the White Goods PLI scheme (including ACs and LED Lights), the total investment is expected to be Rs.11,198 crore (US$ 1.26 billion), with cumulative production touching Rs. 1,90,050 crore (US$ 21.12 billion) over the lifetime of the scheme.
The Production-Linked Incentive (PLI) scheme, approved by the Union Cabinet with an allocation of Rs. 6,238 crore (US$ 693 million), seeks to develop a strong local component supply chain for ACs and LED lights, reduce import dependence, and further integrate India into the global supply chain. The scheme provides incremental sales incentives at a gradually reducing rate over five years after a one-year gestation period, increasing Domestic Value Addition expected to increase from the current 20-25% to 75-80%. The selected companies will manufacture components such as compressors, copper tubes, control assemblies, heat exchangers, BLDC motors, LED drivers, LED engines, and many more, which is a significant milestone in the development of India’s white goods sector and export capabilities. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.