💥UPSC 2026, 2027 UAP Mentorship September Batch

Electronic System Design and Manufacturing Sector – M-SIPS, National Policy on Electronics, etc.

PLI Scheme for White Goods

Why in the News?

The Centre has announced reopening of the application window for the Production-Linked Incentive (PLI) Scheme for White Goods, following the strong response and success of earlier rounds.

Note: White goods refer to large household appliances like refrigerators, washing machines, and air conditioners, so named because they were traditionally white.

About the PLI Scheme for White Goods:

  • Objective: To create a complete component ecosystem for ACs and LED lights, integrating India into global supply chains and boosting domestic manufacturing.
  • Approval: Cleared by the Union Cabinet in April 2021; implemented by the Department for Promotion of Industry and Internal Trade (DPIIT).
  • Duration: Implemented over seven years (FY 2021–22 to FY 2028–29) with a total outlay of ₹6,238 crore.
  • Incentives: Provides 4–6% incentive on incremental turnover (over base year 2019–20) for both domestic sales and exports, applicable for five years to eligible companies.
  • Eligibility:
    • Applicant must be a company incorporated under the Companies Act, 2013.
    • Eligibility depends on achieving threshold levels of incremental sales and investments.
    • Entities availing benefits under any other PLI scheme for the same products are not eligible.
  • Beneficiaries So Far: 83 companies with committed investment of ₹10,406 crore have been approved under the scheme, covering AC and LED components across the entire value chain.
  • Employment and Exports: Expected to create jobs, expand exports, and enhance self-reliance in components that were earlier imported.
[UPSC 2023] Consider the following statements:

Statement I: India accounts for 3.2% of global exports of goods.
Statement II: Many local companies and some foreign companies operating in India have taken advantage of India’s ‘Production-linked Incentive’ scheme.
Which one of the following is correct in respect of the above statements?
(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
(c) Statement-I is correct but Statement-II is incorrect
(d) Statement-I is incorrect but Statement-II is correct *

 

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