Preparation of incentives for AC, TV and furniture production

New Delhi Government is preparing to give Production Linked Incentive (PLI) on the increase in production and export of products like air-conditioners, television, pesticides, and furniture. The amount of PM is being discussed with the Finance Ministry.

The PM will be finalized soon. Commerce and Industry Minister Piyush Goyal recently said in a program to give PM to 12 major sectors soon. China dominates the production and global export market of all these products, which India wants to reduce in any case. The government has already announced the PM to increase the production and export of mobile phone and electronics components.

According to ministry sources, imports from China in the Ministry of Commerce and Industry for the last two months, there was considerable churning on shutting down and encouraging their production in India. All types of partners from industrial organizations participated in it. That is why the Ministry of Commerce and Industry last week prohibited the import of all types of color TVs into the licensing category. China accounted for 35 percent of color TV imports. According to information received from industry organizations, 75 percent of the worldwide used room ACs are manufactured in China, and 75 percent of AC's exported to the global market is supplied from China and Thailand.

The demand for room AC in India is increasing rapidly and it is estimated that by 2026, the demand for room AC will increase by 14% every year. Currently, India's share in the world's room AC market is five percent, which will increase to 11 percent by 2025. This is the reason that in the Ministry of Commerce and Industry last month, in the discussion of the incentive measure of AC production in India, the first emphasis was placed on setting up a compressor making unit in India.

It was revealed in the meeting that in the next five years there is scope for making and exporting one lakh crore room ACs in India, which the government can now give PLI for realization. In late May, the government had increased the import duty on furniture items by up to 15 percent to encourage Indian manufacturing in furniture.