Consumer durable industry on growth path, should aim to boost exports: DPIIT Secy

The Union Cabinet gave approval for the PLI scheme for white goods for manufacturing of components and sub-assemblies of Air Conditioners (ACs) and LED lights on April 7, 2021. (file photo)

India's consumer durable industry is on a strong growth path, and should focus on exports and future demand while planning investments or joint ventures for expanding production, said Amardeep Singh Bhatia, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT).

According to a report from the Confederation of Indian Industry (CII), the consumer durable industry is projected to reach approximately Rs 5 lakh crore and will create around five lakh skilled jobs across the value chain by 2030.

“India’s consumer durables sector is on a strong growth path, supported by liberalized investments, a thriving startup ecosystem, innovation and R&D. With industry corridors and industrial parks streamlining land availability and clearances, there’s immense potential for the industry to capture both domestic and global markets," Bhatia said during his address at the Consumer Electronics & Durables Summit organised by the (CII).

The DPIIT also asked white goods manufacturers to participate in large numbers to avail fiscal benefits under the production linked incentive (PLI) scheme for the sector as the response has been muted so far.

Additional Secretary in the DPIIT, Rajeev Singh Thakur, said that the department has again reopened the application window for the PLI scheme for white goods (ACs and LED lights).

The application window is open from July 15 to October 12.

"In the PLI in white goods scheme, somehow the response has been muted. …Probably due to various reasons not sufficient response has come. So I request (the industry) to have a look and probably this time, you can consider (applying)," Thakur said at the same event.

So far, 66 applicants with committed investment of Rs 6,962 crore have been selected as beneficiaries under the PLI scheme.

The Union Cabinet had given approval for the PLI scheme for white goods for manufacturing of components and sub-assemblies of Air Conditioners (ACs) and LED lights on April 7, 2021.

The scheme is to be implemented over a seven-year period, from 2021-22 to 2028-29, and has an outlay of Rs 6,238 crore.

He added that the department can hold talks with the industry separately on issues like quality control orders and logistics.

Thakur told the industry that the time is right to increase investments into the country as the government has enhanced its capex and taken steps to promote ease of doing business.

The public capex in the last 10 years is growing at a fast pace in areas like highways, expressway, ports, airports and railways, but the commensurate response of the private sector "somehow is not up to the expectation", he said.

Meanwhile, DPIIT Secretary Bhatia said that a lot of steps have been taken to promote ease of doing business, cutting down compliance burden and decriminalisation of minor offences.

The government has also recently approved 12 industrial townships and the industry can look at investing there.

He added that capital availability is not an issue now and the government has also provided protection to the industry from predatory imports.

Schemes like PLI and semiconductor mission have been rolled out to promote manufacturing and "now we want the industry" to ensure that they have necessary collaborations in place for technology and investments.

The industry should do collaborations not only to target the domestic market but also become part of global value chains.

"That is an expectation we are having from the entire industry and I think industry will rise to meet these expectations… We have a huge demographic dividend and the industry should take advantage of this otherwise we will miss it," Bhatia added.

He also said that there is no paucity of adequate skilled labour in the country and logistics costs too are coming down.

On logistics, he cited examples of Amazon and Flipkart selling goods in the remotest part of the country.

"I don't think industry should look at the current domestic demand only for collaborations. They should look at the future and export market also in addition to the domestic market," he said, adding expenditure on research and development is "abysmally" low and that needs to be enhanced.