- The government of India has announced the scheme for promoting mobile phones manufacturing in India
- Air conditioners (ACs) are one of the least penetrated consumer electronics categories in India
- TVs and set-top boxes are among the categories that have a high penetration rate
The Confederation of India Industry (CII) has recommended manufacturing of TVs, ACs, set-top boxes and washing machines to be included in the production-linked incentives (PLI) scheme. A report published in the Economic Times has also said that the industry has also recommended counting the entire electronics industry as an ‘essential industry’ under the current scenario.
The government of India had recently announced this PLI scheme to boost mobile manufacturing in the country. It also encompasses specified electronic components including assembly, testing, marking and packaging (ATMP) units.
TV manufacturing in India
A number of essential components required for manufacturing TVs including display panels, are currently exported by brands and OEMs in India. The TV penetration, as per a report by IBEF, increased to 66 per cent in 2018 from 64 per cent in 2016.
These facts make TVs, the second most used consumer electronics after mobile phones. Including manufacturing of TVs under the PLI scheme might attract global players to bring their supply-channel value eco-system in the country.
The same can not only help create jobs in the country but can also encourage local players to come up with manufacturing ides for components used in making TVs. It is to be noted here that a lot of consumers are currently replacing normal TV sets with smart TVs. Set-top boxes have also become commonly used add-ons with TVs.
AC industry in India
Despite all the technological advancements, AC penetration in the country, continues to be one of the lowest in terms of consumer electronics. The installed AC base by 2030, as per a report by IBEF, is forecast to be worth around 124 million ACs.
The installed AC base in India, as per the same report, was approximately 30 million units in 2017. Interestingly, ACs are termed as the next big category of white goods in India. Including AC manufacturing in India might help brands meet consumption not only inside India, but also in the other Asian and African countries.
Washing machines industry in India
The penetration of washing machines, in comparison to ACs, is on the higher side. However, it is still below 15 per cent in the country. While this category has found many users in urban areas, a lot of rural ones still consider washing machines as a luxury item.
Incentive’s for washine machine makers in India might help the industry retail these at competitive prices. Like ACs and TVs, washing machines made in India can be used for meeting the local demand as well as can be exported to many other markets.