New Delhi, Friday, 8th April 2021: ICEA welcomes the Production Linked Incentive (PLI) scheme for air-conditioners and LED lighting worth INR 6,238. The PLI Scheme for white goods is a further step in the same direction. The scheme would position India as a manufacturing hub, spur export and create new job opportunities. It will extend the incentives from 4% to 6% on incremental sales of goods manufactured in India for a period of five years to the companies engaged in manufacturing of Air Conditioners and LED Lights.
This scheme will focus on component manufacturing to increase the exports of these two products from negligible levels as of now to 35% – 40%.
We are confident that on the basis of such forward-looking policy interventions, India should be able to focus its efforts to capture the investment opportunities originating from various global as well as domestic stakeholders to fulfil the Hon’ble Prime Minister’s Vision to establish India as World’s No. 1 manufacturing hub.
Mr. Pankaj Mohindroo, Chairman, India Cellular & Electronics Association (ICEA), says, “ICEA considers this to be a significant development post announcement of the PLI Scheme for Telecom equipment and IT Hardware Products. This scheme is designed to create complete component ecosystem in India and make India an integral part of the global supply chains. The scheme is expected to attract global investments, generate large scale employment opportunities and enhance exports substantially. It will also lead to investments in innovation, research & development and technology up-gradation. This scheme will accelerate production of Air Conditioners & LED’s in the country making India an attractive destination as a global supplier of these products.”
“The PLI Scheme will lead to incremental investment of INR 7,920 Crore, incremental Production worth INR 1,68,000 Crore, exports worth INR 64,400 Crore, earn direct and indirect revenues of INR 49,300 crore and create additional four lakh direct and indirect employment opportunities”, Mr. Mohindroo further added.
Mr. Jasbir Singh Chairman Amber Enterprises & Co-Chairman of ICEA’s Consumer Electronics and Appliances Committee says, “We applaud this step by Government of India. Since last twenty years , AC industry has travelled a journey from few thousands units to 7.0 millions air conditioners being sold as of last year, unfortunately component Eco system did not get developed. Today we continue to import critical components like Compressors, Aluminium, Copper Tubes, Motors, PCB, and Valves in majority. PLI on AC components is right step at right time. Out of 7.0 mill AC, approximately 5.0 mill AC were getting produced in India with only 25% local value addition. PLI is expected to have compounding impact of 25% value add on 5 mill Ac’s to go to 75% value add on 24 mill AC’s in next 7 years time. It will not only attract huge investments and generate employment but also fulfil objective of Self Reliant India Initiative of our govt. We have earmarked 250-300 crores investment for participating in AC PLI for components”.
Mr. Sunil Vachani Chairman Dixon Technologies (India) Ltd. and Chairman of ICEA’s Consumer Electronics and Appliances Committee says “We would like to thank Honourable Prime Minister and honourable commerce and Industry Minister for the path breaking LED PLI scheme. The scheme will help in creating a strong and robust ecosystem for manufacturing components for the lighting industry which will enhance our competitiveness in the global markets in times to come. This is a huge opportunity for the country and industry to make India the global hub for manufacturing of LED lighting products.”
About ICEA: ICEA is the apex industry body for the mobile and electronics industry comprising of manufacturers, brand owners, technology providers, VAS application & solution providers, distributors, and retail chains of mobile handsets and electronics. ICEA is committed to carrying forward its vision of building Indian manufacturing and design in verticals other than mobile handsets while consolidating the gains made in the mobile handset and components industry. ICEA is fully devoted towards improving the competitiveness and growth of the industry by closely working with the ministries of the Government for creating a robust, legal, and ethical electronics industry, thereby creating an innovative market environment in the country.