Huge Momentum for Make in India: ₹1,914 Cr Investment Poured Into 4th White Goods PLI Round

India’s ambition to remake itself into a global manufacturing powerhouse has been steadily gaining ground. But some of the most significant traction is now visible in the white goods industry, where air conditioner and LED component manufacturing is seeing unprecedented momentum. The latest reflection of this confidence comes from the fourth round of the Production Linked Incentive (PLI) Scheme for White Goods, which has concluded with remarkable participation and substantial investment commitments.

The fresh round of applications marks more than just another policy milestone—it mirrors an important economic shift. Smaller manufacturers, technology-driven component makers, and new-age industrial MSMEs are stepping into roles traditionally dominated by global suppliers. And this shift could have a long-term impact on India’s import bill, value addition, and global positioning in consumer electronics.

Strong Response Signals Deepening Trust in India’s Hardware Ecosystem

The fourth application window—open from September 15 to November 10, 2025—received 13 applicants, together committing ₹1,914 crore. In an environment where global supply chains continue to evolve and countries are looking for resilient manufacturing partners, India’s PLI scheme appears to be delivering exactly the kind of assurance companies need.

More importantly, over 50% of the applicants are MSMEs, a distinctly encouraging sign for policy designers who intended the scheme to not only promote large-scale production but also enable smaller firms to play a meaningful role in the electronics manufacturing value chain.

This growing MSME participation suggests two things:

1. Indian MSMEs are increasingly confident about scaling up technologically intensive manufacturing.

2. The PLI Scheme is effectively lowering entry barriers for component makers looking to modernise or expand.

This is especially crucial for sectors like ACs and LEDs, which historically relied heavily on imported components.

AC Component Manufacturing Takes Centre Stage

Of the 13 applicants, nine companies—almost 75%—have proposed investments worth ₹1,816 crore dedicated to manufacturing key AC components. These include:

• Copper tubes

• Aluminium stock

• Compressors

• Motors

• Heat exchangers

• Control assemblies

These components form the backbone of air conditioners, and India has traditionally imported many of them from China, Thailand, and Malaysia. The fresh investments indicate a growing seriousness towards building a complete domestic ecosystem—something that could significantly improve cost competitiveness and reduce reliance on global markets that are often volatile.

One of the applicants is already an existing beneficiary under the PLI scheme and has now pledged an additional ₹15 crore, reflecting continued confidence in the scheme’s incentive framework.

LED Component Manufacturing Sees Steady Expansion

The remaining four applicants have proposed ₹98 crore for LED component manufacturing, covering:

• LED chips

• Drivers

• Heat sinks

Though smaller in quantum, these investments are strategically crucial. LED components have often been assembled in India using imported parts. Increasing local component production could reduce costs for manufacturers and accelerate the shift toward high-efficiency lighting, which remains a major national policy focus.

These investments span six states, 13 districts, and 23 locations, ensuring that the benefits of industrial expansion are regionally distributed—not limited to established industrial belts.

A Growing Scheme: ₹10,335 Cr Committed So Far

With this round, the PLI Scheme for White Goods has now attracted ₹10,335 crore in total committed investment from 80 approved beneficiaries. These investments are projected to:

• Generate ₹1.72 lakh crore in production value

• Create around 60,000 direct jobs

This represents not just manufacturing expansion but also a boost to R&D, supply chain sophistication, and job creation across multiple skill levels—from assembly-line workers to electronic design engineers.

Why This PLI Scheme Matters More Than Ever

Approved on April 7, 2021, with an outlay of ₹6,238 crore, the PLI Scheme for White Goods has a clear strategic motive:
to lift domestic value addition from 15–20% to 75–80%.

This is significant for several reasons:

1. Reducing Import Dependence

India has historically imported critical AC and LED components. Localising these supplies strengthens national manufacturing security.

2. Improving Global Competitiveness

Higher domestic value addition translates into better cost control and export viability.

3. Boosting MSME Innovation

With more than half the applicants now coming from the MSME sector, the scheme is catalysing innovation among smaller players who were previously limited to low-value manufacturing.

4. Strengthening Supply Chain Resilience

Global electronics supply chains have seen multiple disruptions since 2020. Building domestic capacity insulates Indian manufacturers from external shocks.

A Shift in India’s Manufacturing Identity

This round of the PLI Scheme captures an important economic story: Indian manufacturing is getting deeper, more inclusive, and more sophisticated.

Where large corporations once dominated, smaller companies are beginning to invest in high-tech component manufacturing. Where import dependence once shackled competitiveness, domestic ecosystems are taking shape. Where India was once a consumer of global electronics, it is increasingly becoming a producer—and soon, potentially an exporter.

With policymakers pushing value addition and companies responding with large-scale commitments, India’s white goods sector stands at the brink of transformation. And if the current momentum continues, the country could well position itself among the global leaders in AC and LED component production within the coming decade.