Big Boost for India's Manufacturing: MSMEs Lead Surge in White Goods PLI Scheme Investments!

Industrial Goods/Services

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Updated on 13 Nov 2025, 06:25 am

The Indian government's Production Linked Incentive (PLI) Scheme for White Goods is successfully attracting significant investment, particularly from Micro, Small, and Medium Enterprises (MSMEs). In the fourth round, 13 new companies have pledged Rs 1,914 crore in investments. Notably, more than half of these new applicants are MSMEs, indicating a strong shift and growing confidence among smaller manufacturers in India's high-value white goods sector, which includes air conditioners and LED lights.

Of the total committed investment, Rs 1,816 crore is earmarked for manufacturing air conditioner components like copper tubes, aluminium stock, compressors, motors, and heat exchangers by nine firms. Another Rs 98 crore will go towards LED component manufacturing, such as chips, drivers, and heat sinks, by four companies. One existing beneficiary also added Rs 15 crore. These proposed projects are spread across six states, covering 13 districts and 23 locations, reflecting a diverse geographical expansion.

Overall, the PLI scheme for white goods has attracted cumulative investments of Rs 10,335 crore from 80 beneficiaries, expecting to generate Rs 1.72 lakh crore in production and create 60,000 direct jobs. The scheme, with an outlay of Rs 6,238 crore, aims to transform India into a major global manufacturing hub by increasing domestic value addition from 15-20% to 75-80%.

Impact: This news is highly positive for the Indian manufacturing sector and related businesses, signaling increased domestic production, job creation, and technological advancement. It bolsters the 'Make in India' initiative and can lead to greater export potential. The increased participation by MSMEs suggests a healthier and more inclusive growth environment.

Rating: 8/10

Difficult Terms: MSMEs: Micro, Small, and Medium Enterprises, which are small-scale businesses that play a crucial role in employment and economic growth. PLI Scheme: Production Linked Incentive Scheme, a government initiative to provide financial incentives to companies based on their incremental sales of manufactured goods. White Goods: Large household appliances such as refrigerators, washing machines, air conditioners, and ovens. Value Addition: The increase in the value of a product or service through manufacturing, processing, or other means.