After ACs, CEAMA launches PLI scheme for refrigerators, LED TVs

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The Consumer Electronics and Appliances Manufacturers Association (CEAMA) has proposed the government to expand the Production-Linked Incentive (PLI) program to strengthen the ecosystem of refrigerators, washing machines, LED televisions and small electrical appliances.

The government has launched a PLI program for air-conditioner and LED lighting components in 2021.

Eric Braganza, President, CEAMA told line of business“To strengthen domestic manufacturing, we have prioritized our proposal for a PLI scheme for refrigerator components, washing machines, LED televisions and small appliances, as we have a PLI scheme for air-conditioner components. This will further strengthen our manufacturing base in – India and reduce dependence on imports.

The industry association said the PLI scheme for air-conditioners has supported growth in production in the sector.

Most industry players have chalked up double-digit price growth during this year’s festival season and strong demand for premium products. “Volume growth has also been good. Overall, the industry is estimated to have clocked a volume growth of around 8-10 percent during the festival. This growth has been largely fueled by strong demand for the middle and premium segments. “he added.

The industry association said the electronics and appliances industry is expected to double its value in the next three years to reach 1.48 lakh-crore by 2025.

Growth rate

Braganza added that strong demand for cooling products during the summer helped overall growth this calendar year so far. “After two years, we saw the clock cooling products selling very well. That move has fueled overall business growth this year. With low levels of penetration in many product categories compared to international standards, there is strong potential for the industry to continue to grow exponentially in the coming years,” he explained.

“The only blilip has been the impact of the strengthening of the dollar. So, whatever positive impact the players have seen due to the reduction in raw material prices… which has been offset by the strengthening of the dollar, if the dollar continues to strengthen there will definitely be price pressure in the industry,” he added.

Meanwhile, an industry body representing leading retail players, has proposed reforms to the GST. Television has two levels of GST at 18 percent and 28 percent depending on the size of the screen and we were proposing to put it at 18 percent for all categories. We have proposed a lower rate of GST on energy-efficient air-conditioners,” Braganza added.

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