Appliances Industry Advocates for Second Round of PLI Scheme and Tax Rationalisation to Boost Competitiveness

The consumer electronics and appliances sector has urged the government to introduce a second phase of the production-linked incentive (PLI) scheme. This request focuses on products like compressors and motors, alongside a call to rationalise import taxes and tariffs. The Consumer Electronics & Appliances Manufacturers Association (CEAMA) believes these measures will enhance global competitiveness.

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Industry's Call for Tax Reforms

CEAMA President Sunil Vachani emphasised the need to lower taxes and tariffs over time. "We have a large base, and really we should be manufacturing for the world," he stated. Vachani also proposed establishing centres of excellence along coastal regions. These would offer plug-and-play facilities and affordable land to MSMEs and large corporations, boosting export competitiveness.

The industry is also seeking more time to implement Quality Control Order (QCO) and BIS standards. Vachani noted that easing these regulations would facilitate business operations. He highlighted the PLI scheme's success in developing a component ecosystem for air conditioners and white goods, with 66 companies investing nearly ₹7,000 crore.

PLI Scheme's Impact on Value Addition

Vachani reported that value addition in this sector has increased from 18-20% to about 60% last year. He expressed confidence that it could reach 75%. He described the PLI scheme as successful, stating, "The industry requesting that we need to come out with one more round of PLI, especially focused on high-value components like compressors and motors."

He assured that if a second PLI round is implemented, value addition could rise to 95% within two years. Vachani stressed the industry's commitment to making India a global manufacturing hub.

Government's Response and Future Prospects

State Minister of Electronics & IT Jitin Prasada attended the event and promised to discuss these demands with relevant ministries. He cited a JP Morgan report predicting that by 2025, every fourth Apple iPhone will be made in India. Prasada highlighted India's potential to become the third-largest consumer electronics market by 2025, driven by economic growth and government policies.

Prasada noted that this progress has led to a burgeoning middle class with rising aspirations, increasing demand for consumer electronics. This development aligns with India's goal of becoming a major player in global manufacturing markets.