India is expected to experience record-breaking heat this year, leading to a surge in demand for air conditioners (ACs). To meet this demand, the Indian government is considering providing certain concessions to Chinese AC and compressor manufacturers. The government’s goal is not only to meet the rising demand but also to make the country self-reliant in AC production.

Government Initiatives:

• Easing BIS Regulations: The government has relaxed the Bureau of Indian Standards (BIS) regulations for one year to facilitate the import of compressors from China and other countries.
• Investment Incentives: The government is encouraging investment proposals, including partnerships with Chinese companies, to boost domestic production.
• Reconsidering PLI Scheme: The government is considering reintroducing the Production-Linked Incentive (PLI) scheme for white goods, with a special focus on high-value investments like compressor manufacturing.

Challenges and Opportunities:

• Currently, India heavily relies on China for AC compressors.
• Significant investment is needed to boost domestic production.
• The govenment aims to make India Self reliant in AC production in the coming future.