GS 3 – Environment
Context
The government has reopened applications for the PLI scheme targeting white goods, citing robust industry growth and renewed market confidence. This move aligns with efforts to boost domestic manufacturing, reduce import dependency, and enhance India’s position in global supply chains.
White Goods
- Definition: Large, durable household appliances used for essential chores like cleaning, cooking, and climate control.
- Examples: Refrigerators, washing machines, air conditioners (ACs), dishwashers.
- Origin of Term: Initially, these appliances were primarily available in white color, hence the name.
PLI Scheme – Overview
- Launch: Introduced in 2020 under the Make in India initiative.
- Objective:
- Boost domestic manufacturing and reduce import dependence.
- Enhance self-reliance (Atmanirbhar Bharat) and global competitiveness.
- Encourage technology adoption and economies of scale through performance-based incentives.
PLI Scheme for White Goods
- Launch Date: April 2021 for seven years.
- Initial Focus: Air Conditioners (ACs) and LED lights.
- Sector Coverage: Part of a broader PLI framework covering 14 sectors, including:
- Electronics
- Automobiles
- Textiles
- Drones
- White goods, etc.
Approach:
- Performance-Driven: Incentives linked to incremental sales and investment.
- Time-Bound: Encourages rapid scaling of manufacturing operations and adoption of advanced technologies.
Achievements So Far
- Domestic Capability Building:
- Shift towards local manufacturing of AC and LED components, reducing import dependence.
- Investment Generated: ₹1.76 lakh crore attracted under the white goods and allied sectors.
- Employment Creation: Nearly 12 lakh jobs generated directly and indirectly.
- Market Impact: Boosted consumer confidence and strengthened supply chain resilience.
Significance
- Economic Growth: Supports manufacturing sector expansion, a key driver for achieving the $5 trillion economy goal.
- Import Substitution: Reduces India’s reliance on imported AC and LED components, especially from East Asian economies.
- Export Competitiveness: Positions India as a global manufacturing hub for white goods and components.
- Green Transition: Incentivizes production of energy-efficient appliances, aiding climate and energy targets.
Challenges Ahead
- Timely disbursal of incentives and monitoring of compliance.
- Need for technology transfer and R&D to match global standards.
- Integration with logistics reforms and energy-efficient infrastructure to ensure competitiveness.