White Goods Manufacturing in India: PLI Scheme Reopened from July 15 to October 12, 2024

July 9, 2024 Posted by India Briefing Written by Archana Rao Reading Time: 3 minutes

White goods manufacturing in India, specifically for ACs and LED lights, is set to receive a boost as the central government reopens applications for the PLI Scheme for White Goods (PLIWG). Both new applicants and existing beneficiaries of the PLIWG seeking to invest more by moving to a higher target segment, as well as their group companies applying under a different target segment, will be eligible to apply, provided they meet the eligibility conditions.

The PLI Scheme for White Goods (PLIWG) will be reopened for a 90-day period, from July 15 to October 12, 2024. The Ministry of Commerce and Industry stated that this decision was made in response to growing investor interest in the PLI scheme and the expanding market for these products.

Additionally, it has been announced that the terms and conditions of the PLIWG scheme, as notified on April 16, 2021, and the scheme guidelines issued on June 4, 2021, will remain unchanged. Applications can be submitted through the online PLIWG portal.

PLIWG scheme extension and budget utilization

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India’s central government announced a PLI Scheme for White Goods in April 2021, with an initial outlay of INR 62.38 billion (US$747 million). The extension will enable fuller utilization of this budget over a seven-year period, from FY22 to FY29. Citing the growth in local manufacturing of crucial AC and LED components, the commerce ministry expressed optimism about extending the scheme. The previous application window for the PLIWG scheme closed on October 9, 2023.

Under the reopening process, both new applicants and existing beneficiaries of the PLIWG who propose to invest more by switching to a higher target segment, or their group companies applying under a different target segment, will be eligible to apply, provided they meet the eligibility conditions.

S. no.	Target segment	Large investment (value in INR million)			Normal investments (value in INR million)
		Gross block	Global revenue	Net worth	Gross block	Global revenue	Net worth
1.	AC (Components)	3,000	15,000	1,800	1,500	6,000	900
2.	AC (High Value Intermediaries)	2,000	10,000	1,200	1,250	5,000	750
3.	AC (Low Value Intermediaries)	500	2,500	300	250	1,000	150
4.	LED (Core Components)	1,500	7,500	900	500	2,000	300
5.	LED (Components)	120	600	75	50	200	30

Source: DPIIT, Ministry of Commerce and Industry, GoI

Manufacturing Consumer Durables in India: Changes to the White Goods PLI Scheme

The notification further states that quarterly PLI claims processing will replace the current annual process to enhance working capital management, preserve corporate liquidity, and improve operational efficiency for beneficiaries.

The primary objective of the PLIWG scheme is to create a robust ecosystem that enables India to become a prominent player in international supply chains by manufacturing parts and sub-assemblies for LED lights and ACs.

Boosting local manufacturing of white goods in India

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At present, 66 applicants have applied to the PLIWG scheme, committing a total investment of INR 69.62 billion (US$834 million). Major electronics companies such as Daikin, Voltas, and Hindalco have invested in manufacturing AC components, while firms like Dixon, R K Lighting, and Signify have invested in LED light components. These investments are expected to boost local manufacturing across the entire value chain, including components that are currently not produced in sufficient quantities in India.

Significant home appliances such as air conditioners, LED lights, dishwashers, clothes dryers, drying cabinets, freezers, refrigerators, kitchen stoves, water heaters, washing machines, microwave ovens, and induction cookers are referred to as white goods or consumer durables.

India allows 100 percent foreign direct investment (FDI) through the automatic route in the production of consumer durable goods.

(US$1 = INR 83.46)

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