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PLI scheme will boost local production of white goods, says industry association

PLI scheme will help set up local manufacuring facilities for appliances like air conditioners as also products like LED lights.

November 12, 2020 / 07:16 PM IST

The Cabinet approval to the production-linked incentive (PLI) scheme on November 11 is expected to provide a boost to local manufacturing of white goods in India.

Industry body CEAMA (Consumer Electronics and Appliance Manufacturers Association) said the domestic manufacturing will also help generate employment in the appliances industry. The size of the white goods industry in India is estimated to be Rs 80,000 crore.

The total allocation under PLI would be Rs 1.46 lakh crore over five years, according to the government statement. Of this, Rs 6,238 crore has been set aside for white goods including products like air-conditioners and LED lights.

Additionally, Rs 5,000 crore has been allocated for technology and electronic products which would include mobile phones, smartphone accessories, computers and laptops among others.

Kamal Nandi, President-CEAMA and Business Head & Executive Vice President-Godrej Appliances said that production linked incentives of Rs 1.46 lakh Cr spread over 5 years will go a long way in boosting indigenous manufacturing in various sectors including consumer durables/white goods.


"This in turn will aid in creating more job opportunities in the country and will also put an upward thrust on the economy by bringing in large-scale manufacturing to India. CEAMA is committed to promoting domestic manufacturing of appliances and consumer electronics in the country," he added.

High-end televisions, air compressors for air conditioners, laptop processors and CPU chips, as well as smartphones, are imported from markets like China. Amidst the coronavirus outbreak and calls to boycott Chinese goods, Prime Minister Narendra Modi had called for Aatmanirbhar Bharat (self-reliant India) in a speech in May 2020.

The thrust should be to have a strong domestic manufacturing capability where India can make not just for its consumption but also for the world, he said.

Nandi said the PLI scheme will assist in the necessary boost to the ‘Make in India' initiative and support India into becoming a manufacturing hub.

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Moneycontrol News
first published: Nov 11, 2020 07:15 pm
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