India's White Goods Revolution: ₹1914 Crore PLI Boost Ignites Manufacturing Boom!

Industrial Goods/Services

|

Updated on 13 Nov 2025, 07:13 am

The Department for Promotion of Industry and Internal Trade (DPIIT) announced that it has received 13 new applications under the fourth round of the Production Linked Incentive (PLI) scheme for white goods, specifically air conditioners and LED lights. These applications represent a significant investment commitment of ₹1,914 crore. The focus is on developing a robust component ecosystem within India, with investments directed towards critical parts like compressors, motors, control assemblies for ACs, and LED chips and drivers for lighting. The scheme aims to transform India's manufacturing landscape by increasing domestic value addition from the current 15-20 percent to a target of 75-80 percent. This initiative is crucial for making India a prominent global manufacturing hub.

**Impact** This influx of investment is expected to significantly boost domestic manufacturing capabilities, reduce reliance on imports for key components, create substantial direct employment opportunities (around 60,000 projected), and enhance India's export potential in the white goods sector. For investors, this signals growth opportunities in companies involved in the white goods value chain and related component manufacturing. Rating: 8/10

Difficult terms: * **Production Linked Incentive (PLI) scheme:** A government scheme that provides financial incentives to companies based on their incremental sales of manufactured goods. It aims to boost domestic manufacturing and reduce import dependency. * **White Goods:** Large electrical goods or home appliances, such as refrigerators, washing machines, air conditioners, and television sets. In this context, it specifically refers to Air Conditioners (ACs) and LED Lights. * **Domestic Value Addition:** The percentage of a product's value that is created within the home country during its manufacturing process, as opposed to imported components or services.