What Does the PLI White Goods Scheme Mean for 5 Selected Firms?
Synopsis
The Indian government's recent announcement regarding the PLI Scheme for White Goods highlights the expected production of Rs 8,337 crore by five selected firms, creating 1,799 jobs by FY 2027-28. This initiative aims to strengthen India's manufacturing capabilities in air conditioners and LED lights, enhancing domestic value addition significantly.
Key Takeaways
5 companies selected to produce Rs 8,337 crore by FY 2027-28.
1,799 direct jobs expected to be created.
Total investment of Rs 11,198 crore anticipated from 85 companies.
Domestic value addition projected to rise to 75-80 percent .
Scheme aims to enhance India's role in global supply chains.
New Delhi, Jan 23 (NationPress) The government announced on Friday that a total of five firms, chosen in the fourth phase of the Production-Linked Incentive (PLI) Scheme for White Goods, are projected to achieve a remarkable production value of Rs 8,337.24 crore and create 1,799 new direct jobs by the fiscal year 2027–28.
The assessment of 13 submissions received during this round under the PLI Scheme for White Goods has culminated in the provisional selection of five candidates, who have committed to investing Rs 863 crore. All selected firms specialize in the production of air conditioner (AC) components, as stated by the Ministry of Commerce and Industry.
The statement further noted that in total, 85 companies have been selected under the PLI Scheme for White Goods (encompassing Air Conditioners and LED Lights), with anticipated investments amounting to Rs 11,198 crore, which will lead to an overall production output of Rs 1,90,050 crore throughout the scheme's duration.
Additionally, eight applications have been forwarded to the Committee of Experts (CoE) for thorough review and recommendations.
The scheme provides incentives ranging from 6 percent to 4 percent on a declining scale based on increased sales for a duration of five years, following an initial base year and a one-year gestation period.
Domestic value addition is projected to rise from the current 20–25 percent to 75–80 percent.
The Cabinet sanctioned the PLI Scheme for White Goods (covering Air Conditioners and LED Lights) on April 7, 2021, with a total budget of Rs 6,238 crore, set to be implemented from FY 2021–22 to FY 2028–29.
Under this initiative, manufacturers of air conditioners will produce various components such as compressors, copper tubes (plain and/or grooved), control assemblies for both indoor and outdoor units (IDUs and ODUs), heat exchangers, and BLDC motors, among others.
For LED lights, components including LED chip packaging, LED drivers, LED engines, LED light management systems, and metallized films for capacitors, among others, will also be produced within India, according to the official statement.
This scheme aims to establish a robust domestic component ecosystem for the air conditioning and LED lights sector, thereby positioning India as a vital player in the global supply chain.
Point of View
I believe that the government's initiative through the PLI Scheme for White Goods is a strategic move to enhance India's manufacturing prowess. By fostering domestic production and creating jobs, this scheme not only strengthens the economy but also positions India favorably in the global market for air conditioning and LED lighting solutions.
NationPress
16 Jul 2026
Frequently Asked Questions
What is the PLI Scheme for White Goods?
The PLI Scheme for White Goods is an initiative by the Indian government aimed at boosting domestic manufacturing of air conditioners and LED lights through financial incentives and support.
How many companies have been selected under the PLI Scheme?
A total of 85 companies have been selected under the PLI Scheme for White Goods, which includes air conditioners and LED lights.
What is the expected production value from the selected firms?
The five selected firms are expected to achieve a total production value of Rs 8,337.24 crore by FY 2027-28.
What incentives does the PLI Scheme offer?
The PLI Scheme offers incentives ranging from 6 percent to 4 percent on a reducing basis on incremental sales over a period of five years.
What is the significance of this scheme for domestic manufacturing?
This scheme is significant as it aims to increase domestic value addition from 20-25 percent to 75-80 percent, thereby strengthening the local manufacturing ecosystem.
