India’s push to turn itself into a global manufacturing hub for air conditioners and LED lights has drawn a new wave of investor interest, and this time, it’s the smaller players leading the charge.
The fourth round of the Production Linked Incentive (PLI) Scheme for White Goods has pulled in 13 companies committing Rs 1,914 crore in fresh investments, the Ministry of Commerce and Industry said on November 12. What stands out: more than half the new applicants are MSMEs, marking a shift in how India’s smaller manufacturers are viewing the high-value white goods ecosystem.
The fresh round of applications, invited by the Department for Promotion of Industry and Internal Trade (DPIIT) between September 15 and November 10, reflects strong participation from small and medium enterprises, which account for more than half of the new applicants.
MSMEs drive participation
Nine of the 13 applicants have lined up Rs 1,816 crore to manufacture components for air conditioners, from copper tubes and aluminium stock to compressors, motors, and heat exchangers.
Another four firms have proposed Rs 98 crore in investments for LED components such as chips, drivers, and heat sinks. One existing PLI beneficiary also decided to double down, pledging an additional Rs 15 crore.
The proposed projects span six states, 13 districts, and 23 locations, signalling a geographically diverse push across India’s manufacturing corridors.
So far, the PLI scheme for white goods has drawn a cumulative Rs 10,335 crore in committed investment from 80 approved beneficiaries. These projects are expected to generate Rs 1.72 lakh crore worth of production and create around 60,000 direct jobs, according to government estimates.
Boost to domestic manufacturing ecosystem
Approved by the Union Cabinet in April 2021 under Prime Minister Narendra Modi’s leadership, the PLI scheme for white goods has an overall outlay of Rs 6,238 crore.
The scheme aims to build a complete domestic component ecosystem for air conditioners and LED lights, raising India’s value addition in the sector from the current 15–20 percent to as high as 75–80 percent.
The government said the new investment commitments under the latest round are expected to accelerate this shift, positioning India as a major global manufacturing hub for high-value white goods components.
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