The Consumer Electronics and Appliances Manufacturers Association (CEAMA) has pitched to the government to extend the Production-Linked Incentive (PLI) scheme to strengthen the component ecosystem for refrigerators, washing machines, LED televisions and small appliances.
The government rolled out the PLI scheme for components of air-conditioners and LED lights in 2021.
Eric Braganza, President, CEAMA told businessline, “To boost domestic manufacturing, we have put forward our suggestion for the PLI scheme for components of refrigerators, washing machines, LED televisions and small appliances, just as we have the PLI scheme for components for air-conditioners. This will further strengthen our component manufacturing base in India and reduce dependency on imports.”
The industry body said the PLI scheme for air-conditioners has supported growth in manufacturing in the sector.
Most industry players clocked double-digit value growth during festival season this year with strong demand for premium products. “The volume growth has also been good. Overall, the industry is estimated to have clocked volume growth of about 8-10 per cent during the festival season. This growth was largely fuelled by strong demand for the mid and premium segments.,” he added.
The industry body said the consumer electronics and appliances industry is expected to double its value in the next three years to reach 1.48 lakh-crore by 2025.
Braganza added that strong demand for cooling products during the summer season helped overall growth momentum during this calendar year so far. “ After two years, we saw cooling products clock the highest ever sales. That momentum has propelled the overall growth of the industry during this year. With the low penetration levels in most product categories compared to international levels, there is strong potential for the industry to continue this growth momentum in the coming years ,” he explained.
“The only blip has been the impact of the strengthening of the dollar. So, whatever positive impact players saw due to some reduction in raw material prices… that got offset by the strengthening of the dollar, if the dollar keeps strengthening then there will definitely be price pressures on the industry ,” he added.
Meanwhile, the industry body which represents leading consumer durable players, has also been pitching for rationalisation in GST. “ Television has two levels of GST at 18 per cent and 28 per cent depending on the screen size and we have been recommending it to be set at 18 per cent for the entire category. We have also been recommending a lower GST rate for energy-efficient air-conditioners,” Braganza added. The Hindu Business Line