PLI will spur white goods sector to compete globally, help it scale: Goyal

Minister says 61 companies had set up component plants in 14 states and UTs. They are expected to invest about Rs 6,632 crore and create 46,368 direct job opportunities

Commerce and industry minister Piyush Goyal on Friday said that the government’s production-linked incentive (PLI) scheme will encourage the white goods industry to take the first few steps to compete in the global market and give players in this space the initial push to scale their businesses.

“You want to become global champions. You want to compete with the rest of the world on an equal footing from a position of strength. India is not a weak country. We are not looking for sops. We are not scared of any competition. That’s the message this room should give out to the rest of the world,” Goyal said at the DPIIT-Ficci Investor Roundtable on PLI for White Goods.

Goyal added that 61 companies had set up component manufacturing plants at 111 locations, across 14 states and union territories. These companies are expected to bring investments in component manufacturing eco-system of ACs and LED Lights industry to the tune of Rs 6,632 crore and generate 46,368 direct employment opportunities. The scheme is expected to lead to total production of components of ACs and LED lights of about Rs 1.22 trillion over five years.

The PLI Scheme on white goods is designed to create a complete component ecosystem for the AC and LED light industry in India, which is an integral part of the global supply chain. The investments committed are spread across units in the states of Gujarat, Andhra Pradesh, Goa, Himachal Pradesh, Uttar Pradesh, Uttarakhand, Karnataka, Maharashtra, Telangana, Tamil Nadu, Haryana Rajasthan and West Bengal and in the Union Territory Daman & Diu.

Anil Agarwal, additional secretary at the industry department, said significant capacities are coming up for components, such as compressors, aluminum stock and copper tubes for air conditioners, among others. Such initiatives will create a robust component ecosystem in the country and 15 projects have already been commissioned, he said.

Last year, the Union Cabinet had approved the PLI scheme for white goods to be implemented over FY 2021-22 to FY 2028-29 with an outlay of Rs 6,238 crore.