(GS Paper 3: Economy | GS Paper 2: Governance | Prelims Relevance)
Context:
The Union government has reopened the Production-Linked Incentive (PLI) Scheme for white goods—specifically air conditioners and LED lighting—until October 14, aiming to attract new investments, enhance domestic manufacturing, and strengthen India’s industrial ecosystem.
Key Points
- Reopened Application Window:
The Ministry of Commerce and Industry announced the reopening of the PLI scheme application window for the white goods sector up to October 14, citing strong market growth and renewed industry confidence. - Objective:
The scheme aims to boost local manufacturing of ACs, LED lights, and their components, thereby reducing import dependence and enhancing India’s self-reliance in consumer electronics. - Investment and Participation:
- So far, 83 beneficiaries have been approved under the scheme.
- These firms have collectively committed investments worth â‚ą10,406 crore.
- Both new and existing beneficiaries can now reapply to expand or diversify their investments.
- Background:
The Union Cabinet approved the PLI scheme for white goods in April 2021 as part of a broader strategy to strengthen the Make in India and Atmanirbhar Bharat initiatives.
Detailed Insights
- Strengthening Local Manufacturing:
Reopening the scheme demonstrates the government’s intent to foster domestic value chains and reduce dependency on imported components, particularly those not yet produced in India. - Economic and Industrial Impact:
The initiative is expected to:- Create economies of scale in manufacturing.
- Boost exports of white goods and components.
- Generate significant employment opportunities across manufacturing and ancillary sectors.
- Sustainability and Energy Efficiency:
By focusing on ACs and LED lighting, the scheme also supports energy-efficient technologies and aligns with India’s goals for a sustainable industrial transition.
Significance:
The reopening of the PLI scheme reinforces India’s commitment to industrial growth, investment promotion, and sustainable manufacturing—key elements for achieving long-term economic resilience and global competitiveness.