Why in news?
On 23 January 2026 the government announced that five more companies were selected under the fourth round of the Production Linked Incentive (PLI) Scheme for white goods. These firms will manufacture components for air conditioners and LED lights in India.
Background
The PLI Scheme for white goods, launched in April 2021, provides financial incentives to boost local manufacturing of air‑conditioner components and LED lighting. It aims to reduce import dependency, increase value addition and create jobs as part of the Make in India initiative.
Key details
- New investments: The five companies selected in the fourth round have committed to invest ₹863 crore. Their production is expected to be worth around ₹8,337 crore and could create about 1,800 direct jobs by FY 2027‑28.
- Overall impact: Across four rounds, 85 companies have been approved under the scheme. They plan to invest about ₹11,198 crore and produce goods worth more than ₹1.9 lakh crore over the scheme’s lifetime.
- Focus on components: Incentives cover critical parts such as compressors, copper tubes and motors for air conditioners and chip‑on‑board LEDs, drivers and printed circuit boards for lighting.
- Technological innovation: The scheme encourages energy‑efficient and environmentally friendly technologies and seeks to develop export capabilities.
Significance
- The PLI scheme is expected to raise domestic value addition in white goods from around 20–25 percent to 75–80 percent.
- It will create jobs, attract investment and strengthen India’s position as a manufacturing hub for household appliances.
- By promoting local production of components, the scheme reduces dependence on imported parts and supports supply‑chain resilience.
Conclusion
The latest selections under the PLI Scheme for white goods show continued progress in building a self‑reliant appliance sector. Effective implementation and monitoring will help India become a global supplier of energy‑efficient air conditioners and LED lights.
Source: PIB
