India's ambitious campaign to establish itself as a global manufacturing powerhouse received a significant boost this week, as a fresh wave of investments under a key government scheme promises to strengthen the domestic production of essential consumer goods.
Major Investment Influx for White Goods
The catalyst for this development is the Production-Linked Incentive (PLI) Scheme for White Goods. In a major show of confidence, 13 companies have committed new investments totaling ₹1,914 crore. A noteworthy aspect of this commitment is that more than half of these applicants are Micro, Small, and Medium Enterprises (MSMEs), signaling a growing belief among smaller players in the nation's manufacturing capabilities.
The Ministry of Commerce and Industry highlighted that this trend indicates the growing confidence of MSMEs in the manufacturing value chain specifically for air-conditioners and LED light components.
Breaking Down the Investments
A detailed look reveals where this substantial investment is being directed. The ministry's statement provided a clear breakdown:
- Nine companies will channel the lion's share of the investment, ₹1,816 crore, towards manufacturing critical components for air-conditioners. This includes essential parts like compressors, motors, copper tubes, and control assemblies.
- Four other firms are set to invest ₹98 crore in the production of components for LED lights, such as chips, drivers, and heat sinks.
- Among the 13 applicants, one is an existing beneficiary of the scheme, demonstrating continued faith by committing an additional ₹15 crore in investment.
The geographical spread of these projects is also significant. They are spread across 13 districts in six states, encompassing 23 different locations. This wide dispersal is expected to generate new employment opportunities and help build deeper, more resilient regional supply chains across the country.
Deepening India's Manufacturing Ambitions
This recent investment push is a part of a larger strategic initiative. The Indian government first introduced the PLI scheme in 2020, aiming to transform the country into a manufacturing hub in the wake of Covid-19 pandemic-related disruptions to global supply chains.
The scheme has since expanded to cover more than a dozen sectors, from electronics and pharmaceuticals to textiles, and has become a cornerstone of Prime Minister Narendra Modi's 'Make in India' and 'Atmanirbhar Bharat' (Self-Reliant India) visions.
The white goods component of this scheme, which received approval in April 2021 with an initial outlay of ₹6,238 crore, has a clear objective: to build a comprehensive domestic ecosystem for air-conditioners and LED lighting. A key target is to dramatically increase local value addition from the current 15-20% to an impressive 75-80%.
The commerce ministry confirmed that this particular PLI scheme has been highly successful, having attracted committed investments of ₹10,335 crore from 80 approved beneficiaries so far. It is projected to generate a massive ₹1.72 trillion in production and create approximately 60,000 direct jobs nationwide, marking a substantial step towards self-reliance in manufacturing.
