Updated on March 06, 2025 01:44:53 PM
The Production Linked Incentive (PLI) Scheme for White Goods promotes India as a manufacturing hub for White Goods such as Air Conditioners and LED Lights and ensures creation of downstream industry. The PLI Scheme for White Goods works on the policy of performance incentives, promoting the expansion in operation size and capital intensity, and mitigating reliance on imported inputs. Beyond fostering employment and supporting construction, the PLI Scheme for White Goods is meant to improve the exportation value and build a competitive environment for investments both national and international. Finally, the PLI Scheme for White Goods can help India achieve the strategic objective of becoming a significant exporter of quality electronic appliances.
The PLI Scheme for White Goods aims to enhance India’s production of critical components of White Goods such as Air Conditioners and LED Lights that fall under automotive air conditioning compressor, LED chip sets. The PLI Scheme for White Goods is to provide an opportunity to increase import dependence in white goods and make India the center for manufacturing and exporting such products. PLI Scheme for White Goods is done through performance incentives by which it seeks to promote large-scale production and the use of new technologies along with increased global market competitive capability. The multiplier effect of the PLI Scheme for White Goods contributes to the expansion of the economy and employment generation, and enhances the position of India’s electronics manufacturing sector in the global supply chain for consumer goods under the Aatmanirbhar Bharat mission.
The Production Linked Incentive (PLI) Scheme for White Goods provides significant advantages to India’s manufacturing industry:
The Production Linked Incentive (PLI) Scheme for White Goods offers structured incentives based on sales and goods manufactured in India:
| Criteria | Details |
|---|---|
| Incentive Rate | 4% to 6% on incremental sales (net of taxes) over the base year for goods manufactured in India within the target segments. |
| Eligibility Period | 5 years after the base year with an additional 1-year gestation period. |
| Initial Investment Year | FY 2021-22 |
| Initial Incremental Sales Year | FY 2022-23 |
| Disbursement Timing | Incentive disbursement for a given year is subject to meeting the incremental investment and sales criteria and occurs after the respective year. |
| Fund Limitation | The scheme is fund-limited; total incentive payout is capped at the Cabinet-approved amount, regardless of overachievement. |
The following table has the selection of beneficiaries for the Production Linked Incentive (PLI) Scheme for White Goods.
| Criteria | Details |
|---|---|
| Incentive Scope | Only manufacturing of components or subassemblies is incentivized; mere assembly of finished goods is not. |
| Focus | Prioritizes companies manufacturing components or sub-assemblies currently lacking sufficient domestic capacity in India. |
| Priority for Core Components | Companies investing in basic/core components receive higher priority. |
| Investment Priority within Segments | Large investments are given priority over normal investments within each target segment. |
| Beneficiary Determination | The final number of beneficiaries in each segment depends on the industry’s response and fulfillment of eligibility criteria. |
The PLI Scheme for White Goods offers incentives for five years after the base year with one year of gestation period for investment starting 2021-22 to ending in 2028-29 Fiscal. Initially, the PLI Scheme for White Goods will be operative for six months, although the application window may be extended at the end. Target segment specific applications also may be called for anytime during the running period of the PLI Scheme for White Goods due to industry requirement. For those applications which are submitted at latter days of the PLI Scheme for White Goods, claims for incentives would only be up to the remaining period of such scheme only. The revenue FY 2019-20 is made the reference point for earning cumulative incremental investment and incremental sales (net of taxes) of manufactured products as well as the eligibility criteria for prequalification of PLI Scheme for White Goods.
The Production Linked Incentive (PLI) Scheme for White Goods is a strategic initiative to make India an export hub for products like Air Conditioners and LEDs. As a result of promoting local production and for encouraging investments, the PLI Scheme for White Goods enhances the competitiveness and the growth of the white goods industry in India and reduces dependency on imports. The facilities available under the PLI Scheme for White Goods not only foster the growth of the economy and development of infrastructure but also offer generation-scale employment. In conclusion, the PLI Scheme for White Goods helps to further Make in India and Atma Nirbhar Bharat vision of exporting high-end qualitative electronic-appliances from the country.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
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The PLI Scheme for White Goods aims to boost the manufacturing of parts for White Goods like Air Conditioners and LED Lighting to make India an export hub globally for White Goods.
The PLI Scheme for White Goods has the benefits of attracting investment benefits, domestic manufacturing, manufacturing facilities, export competitiveness, and the creation of large-scale employment opportunities.
The new companies need to fulfill the criteria of incremental investment and sales in comparison to the base year which is (FY 2019-20). The PLI Scheme for White Goods encourages production of parts or sub-assembly rather than just assembling of end products.
The incentive rate ranges from 4% to 6% on incremental sales (net of taxes) over the base year for goods manufactured in India within target segments.
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