PLI for white goods: Modest numbers, Big industrial signal

The fourth round of the Production Linked Incentive (PLI) Scheme for White Goods has attracted 13 new applicants committing a combined investment of ₹1,914 crore, according to the Department for Promotion of Industry and Internal Trade (DPIIT). More than half of the applicants are Micro, Small and Medium Enterprises (MSMEs), reflecting growing confidence among smaller manufacturers to join India’s air-conditioner and LED component supply chain. The application window for this phase of the PLI scheme remained open between September 15 and November 10, 2025.

Out of the 13 applicants, nine firms accounting for nearly 75 per cent of the total have proposed investments worth ₹1,816 crore for manufacturing key air conditioner components such as compressors, copper tubes, aluminium stock, motors, heat exchangers, and control assemblies. One of these companies is already an existing beneficiary under the scheme and has committed an additional ₹15 crore. The remaining four companies have applied to invest ₹98 crore in LED component manufacturing, including LED chips, drivers, and heat sinks. The proposed projects span across six states, 13 districts, and 23 locations, promising to stimulate regional industrial growth and generate employment opportunities.

Since its launch in April 2021, the PLI Scheme for White Goods approved by the Union Cabinet chaired by Prime Minister Narendra Modi has attracted a total committed investment of ₹10,335 crore from 80 approved beneficiaries. The scheme, with a total outlay of ₹6,238 crore, is expected to generate production worth ₹1.72 lakh crore and create around 60,000 direct jobs across the country. Its broader aim is to build a robust domestic ecosystem for components used in air conditioners and LED lighting, increasing domestic value addition from the current 15–20 per cent to as much as 75–80 per cent, thereby positioning India as a competitive global hub for white goods manufacturing.

Experts view this latest round of applications as a positive signal for India’s manufacturing ambitions. The strong participation of MSMEs demonstrates widening industrial confidence and deeper supply chain integration. By encouraging local production of critical components, the initiative could help India reduce import dependence and strengthen its manufacturing base in alignment with the “Make in India” vision.

However, the success of this round depends heavily on implementation. Analysts caution that while the investment commitments are encouraging, the real challenge lies in converting proposals into functional manufacturing units. Land acquisition, infrastructure bottlenecks, power supply, and access to skilled labour remain critical concerns. Moreover, scaling up air-conditioner production could increase energy consumption unless accompanied by strict energy-efficiency standards. The International Energy Agency has warned that the growing demand for cooling in India could significantly raise electricity demand and emissions unless manufacturing is paired with efficient, eco-friendly technologies.

Overall, the fourth round of PLI applications is a constructive sign for Indian industry. If the proposed investments materialize into operational plants, the initiative could give a strong push to domestic manufacturing, create thousands of skilled jobs, and help India move closer to self-reliance in white goods production. However, the economic gains will only be realized through consistent execution, infrastructure support, and alignment with energy and environmental goals. The ₹1,914-crore commitment, while modest compared to earlier rounds, signals steady momentum in India’s journey toward becoming a global manufacturing hub provided the follow-through is as strong as the intent.