PLI Scheme for White Goods: Eligibility, Incentives & Expert Guidance

Written by CA Anand Daga
on September 20, 2025
7:52 am

Introduction: PLI scheme for white goods

The PLI scheme for white goods has become one of the most significant opportunities for manufacturers in India, especially in sectors like air conditioners and LED lights. Announced by the Government of India under the production linked incentive scheme India, it is designed to boost domestic manufacturing, reduce imports, and create a globally competitive supply chain.

However, while the scheme promises incentives ranging from 4%–6% on incremental sales, successfully availing these benefits requires precise eligibility checks, extensive documentation, and compliance with multiple guidelines. For manufacturers and investors, the process can feel overwhelming — which is why working with an experienced subsidy consultant becomes essential.

What is the PLI Scheme for White Goods?

The Production Linked Incentive (PLI) scheme for white goods is specifically targeted at manufacturers of air conditioners (ACs) and LED lights. Its objectives include:

Encouraging large-scale domestic production of components and sub-assemblies.
Reducing dependence on imports for key items like compressors, LED chips, PCBs, and drivers.
Offering financial incentives of 4%–6% on incremental sales over a base year.
Attracting investments into greenfield and brownfield projects.

Unlike generic subsidy programs, this scheme links incentives directly to performance, ensuring that only manufacturers who achieve growth and value addition benefit.

Focus Segments Under the Scheme

1. PLI for Air Conditioners

Manufacturers of air conditioners are eligible for incentives if they invest in:

High-value intermediaries such as compressors and copper tubes.
Low-value intermediaries such as motors, control assemblies, heat exchangers, and plastic molded components.

This focus ensures that India does not just assemble finished units but builds a full supply chain of AC components.

2. PLI for LED Lights

The scheme also covers LED lighting, a fast-growing sector in India. Eligible categories include:

Core components: LED chip packaging, integrated circuits, resistors.
Other components: LED drivers, modules, PCBs, heat sinks, diffusers.

By encouraging local production of these parts, the scheme supports India’s shift to energy-efficient lighting solutions.

PLI Scheme Eligibility Criteria

Before applying, manufacturers need to evaluate whether they meet the eligibility criteria set by the Department for Promotion of Industry and Internal Trade (DPIIT). These criteria include:

Minimum threshold investments (varying for large and normal investment categories).
Net incremental sales targets over the base year.
Net worth and revenue benchmarks.
Greenfield or brownfield project commitments.

For example, manufacturers of AC components under the “large investment” category must commit at least ₹600 crore in investment and achieve specific incremental sales milestones across financial years.

These requirements demand careful financial planning, proper classification of investments, and alignment with the official appendices in the guidelines.

PLI Incentives Percentage

The PLI incentives percentage depends on the product category and year:

Generally,4%–6% on incremental sales compared to the base year.
Higher percentages in initial years, gradually tapering as volumes scale.
Capped incentives tied to multiples of cumulative investments.

For instance:

For AC components, incremental sales up to 5 times the threshold investment are incentivized.
For LED components, incremental sales up to 6 times the threshold investment are covered.

This structure rewards companies that scale quickly, but only if compliance is handled with precision.

How to Apply for PLI Scheme with Finraja Consultancy

On paper, the application process looks straightforward: submit documents, show financials, commit investments, and managed portal. In practice, however, it is highly technical:

Preparing audited financial statements.
Demonstrating investment categories across plant & machinery, R&D, and technology transfer.
Submitting statutory certificates from auditors, cost accountants, and engineers.
Providing detailed manufacturing flow charts and product-wise capacities.

Any error or mismatch can lead to delays, rejection, or even loss of incentive. Therefore, manufacturers rarely handle the process entirely on their own.

PLI Scheme Benefits for Manufacturers

When executed correctly, the PLI scheme benefits manufacturers in multiple ways:

Direct financial support through incentive disbursement.
Boost in competitiveness by lowering production costs.
Expansion opportunities with new plants and R&D.
Global market access by building scale and supply chains locally.

For investors, it de-risks entry into India’s manufacturing ecosystem. For existing players, it ensures they stay competitive against global imports.

Yet, these benefits are only realized if the application is approved, and incentives are disbursed — making expert guidance indispensable.

Why Professional Guidance Matters

While government schemes are designed to encourage participation, the PLI scheme for white goods requires:

Continuous compliance monitoring.
Timely filing of annual claims (with complete supporting documents).
Handling of corrigenda and guideline updates.
Managing statutory audits and certifications.

For most manufacturers, focusing on core operations is already a full-time effort. Partnering with a subsidy consultant ensures that:

Eligibility is accurately assessed.
Applications are structured correctly.
Incentives are maximized without compliance risks.
Deadlines are met, avoiding disqualification.

Conclusion

The PLI scheme for white goods in India offers a rare opportunity for manufacturers of air conditioners and LED lights to scale operations with government support. From eligibility criteria to incentive percentages, every aspect of the scheme is carefully structured to promote domestic manufacturing.

However, the path from application to incentive disbursement is complex, involving multiple checks, documents, and compliance requirements. For businesses looking to seize this opportunity without being weighed down by paperwork and regulatory hurdles, working with an experienced subsidy consultant is the most reliable strategy.

This way, manufacturers can focus on growth while ensuring that they fully capture the incentives available under the production linked incentive scheme India.

Call us now: +91 9373114747 or visit: finraja.com/contact for quick assistance.