India's Heating, Ventilation, and Air Conditioning (HVAC) industry is on the cusp of remarkable growth, driven by the government's strategic implementation of the Production-Linked Incentive (PLI) scheme for white goods. Launched in April 2021 with an outlay of Rs 6,238 crore, this initiative focuses on boosting domestic manufacturing of components for air conditioners (ACs) and LED lights, thereby reducing import dependence and integrating India into global supply chains.

In the third round of the PLI scheme, 24 companies have been provisionally selected, committing a total investment of Rs 3,516 crore. This includes 18 new entrants—10 AC component manufacturers and 8 LED light component manufacturers—pledging Rs 2,299 crore, alongside 6 existing beneficiaries committing an additional Rs 1,217 crore to upgrade their investment categories.

Notable companies such as Jupiter Aluminium Industries, Ram Ratna Wires, and Voltas are among the beneficiaries. The scheme offers incentives ranging from 4% to 6% on incremental sales of goods manufactured in India over a five-year period, encouraging companies to enhance production capacities.

Collectively, 84 companies under the PLI scheme are projected to bring in investments totaling Rs 10,478 crore, resulting in an estimated production output worth Rs 1,72,663 crore throughout the scheme's duration. This substantial investment is anticipated to create a robust component ecosystem for ACs and LED lights, significantly boosting the HVAC industry's manufacturing capabilities and economic growth.

The PLI scheme's emphasis on domestic value addition is expected to elevate current levels from 15-20% to an impressive 75-80%. By fostering a self-reliant manufacturing environment, the initiative aims to position India as a pivotal player in the global HVAC market, reducing reliance on imports and promoting sustainable industry practices.