PLI scheme for Appliances and Consumer Electronics will boost growth: CEAMA

New Delhi, Nov 17 (KNN) India has become one of the fastest growing Appliances and Consumer Electronics (ACE) market in the world and it is expected to be worth Rs 1.48 lakh crore by 2025, said the industry body Consumer Electronics and Appliances Manufacturers Association (CEAMA) on Wednesday.

Speaking at it’s annual event, the CEAMA president Eric Braganza said, “the PLI scheme for categories like small and larger appliances will further help boost the domestic manufacturing and create more job opportunities.”

"We look forward to more PLI schemes in other product categories, which will strengthen the component manufacturing base in India to reduce dependence on imports, thereby propelling the he clarion call on 'Aatmanirbhar Bharat'," he said.

The market size of the ACE industry is currently estimated at around Rs 75 lakh crore.

As per reports, India is also emerging as an alternative manufacturing destination of China and other South East Asian countries. Several OEMs are setting up their base in India now.

The foreign direct investment in the ACE sector has also almost doubled to USD 481 million till June in 2022 as against USD 198 million in 2021.

According to Braganza, the penetration of ACE industry is still low in several categories in comparison to other global markets and India has a lot of headroom for growth.

"Last two years were not good for the growth of the industry due to Covid. However, the industry is now back to growth and this summer, compressor based cooling products have performed well, “he added.

The industry is very optimistic and has desire to adopt new technology and manufacture locally under Make-in-India. Several startups are also adding value to the industry.Presently, the industry is witnessing premiumization trend across the market, having higher sales from the premium and mid premium and entry level going down, Braganza added.

Braganza also urged for some policy level support from the government over taxation under the present GST regime.

The Commerce & Industry Minister also attended the 43rd annual function of CEAMA.  (KNN Bureau)