Commerce Ministry Reports 43% of New White Goods PLI Applicants Are MSMEs

In the latest phase of the Production Linked Incentive (PLI) scheme for the white goods sector, particularly targeting air conditioners (ACs) and LED lights, 43% of the applicants came from the Micro, Small, and Medium Enterprises (MSME) sector, according to a statement from the Commerce Ministry. This round, which began accepting applications from July 15 and closed on October 12, 2024, saw a total of 38 applicants committing Rs 4,121 crore in investments. The ministry noted that this reflects MSMEs’ growing confidence in integrating into the manufacturing value chain for AC and LED components.

The PLI scheme, overseen by the Department for Promotion of Industry and Internal Trade (DPIIT), includes eight existing beneficiaries who have committed an additional Rs 1,285 crore in investment. Meanwhile, 30 new applicants have pledged a combined investment of Rs 2,836 crore, with plans to manufacture a range of components for air conditioners and LED lights across various regions in India.

The planned investments cover 13 states and 49 new industrial locations, with key manufacturing hubs emerging in regions such as Noida-Greater Noida (Uttar Pradesh), Neemrana and Bhiwadi (Rajasthan), Aurangabad-Pune (Maharashtra), Sanand (Gujarat), and Sri City (Andhra Pradesh). The ministry highlighted that a mix of domestic and multinational companies are participating, including five additional foreign companies that have committed Rs 245 crore, alongside 15 existing firms investing Rs 2,287 crore.

The PLI scheme is expected to attract Rs 11,083 crore in total investment in India’s AC and LED manufacturing ecosystem, creating around 80,486 direct jobs. Additionally, the production of AC and LED components in India is anticipated to reach Rs 1,81,975 crore. The PLI scheme for white goods, initially approved by the cabinet in April 2021 with a financial outlay of Rs 6,238 crore, is slated for implementation from FY2022 to FY2029, aiming to boost domestic manufacturing and enhance the MSME sector’s participation.

Disclaimer: The information provided is based on the Commerce Ministry’s reports as of October 2024 and is subject to updates. For the most accurate and current details, please refer to official sources.