The appliances and consumer electronics (ACE) industry has called on the government to introduce a second round of the Production-Linked Incentive (PLI) scheme, targeting high-value components like compressors and motors. Industry body Consumer Electronics & Appliances Manufacturers Association (CEAMA) has also urged for tax rationalization and tariff reductions to bolster India’s competitiveness in the global market.
Expanding Export Competitiveness
Speaking at CEAMA’s 45th annual function, CEAMA President Sunil Vachani emphasized the need to reduce tariffs and taxes, making Indian manufacturers competitive on a global scale. “We have a large base and should be manufacturing for the world,” he stated.
Vachani suggested creating large centers of excellence along coastal areas. These centers could offer plug-and-play facilities for MSMEs. Additionally, affordable land could be provided to large corporations to boost export competitiveness.
PLI Scheme Success and Industry Demands
Vachani highlighted the success of the first round of the PLI scheme for air conditioners and white goods. According to him, 66 companies have invested nearly ₹7,000 crore under the scheme. This investment has significantly increased value addition in the sector from 18-20% to 60% as of last year.
“The industry is requesting one more round of PLI, focusing on high-value components like compressors and motors. If implemented, value addition in this sector could reach 95% in the next two years,” Vachani said. He assured that such initiatives would further strengthen India’s position as a global manufacturing hub.
Ease of Business Recommendations
Vachani also suggested granting manufacturers more time to comply with Quality Control Orders (QCO) and BIS standards, easing the business transition. “We must provide adequate time for manufacturers to adopt these standards,” he noted.
Government Response and Outlook
Minister of State for Electronics & IT, Jitin Prasada, assured the industry that the government would discuss these demands with the relevant ministries. He highlighted India’s rapid growth in consumer electronics, citing a JP Morgan report predicting that by 2025, every fourth Apple iPhone globally will be manufactured in India.
Prasada added that India is poised to join the $100 billion consumer electronics market by 2025, becoming the third-largest market after the US and China. He attributed this growth to government policies and the burgeoning middle class, which is driving massive demand for consumer electronics.
Also read: JK Cement, DPIIT Join Forces for Startups
Future Goals
“The ACE industry will not rest until India becomes a global manufacturing hub,” Vachani declared. Stakeholders believe collaboration will boost innovation, exports, and growth. The ACE sector’s reforms aim to make India a global electronics leader. A second PLI round could be pivotal.
