Both the schemes were announced in the Union Budget 2025. While the focus product scheme for the footwear and leather sector is expected to facilitate employment for 22 lakh people, generating a turnover of ₹4 lakh crores and exports of over ₹1.1 lakh crores; the scheme for toys aims to develop manufacturing clusters with an aim to make India a global hub.
Dismissing criticism of the Production Linked Incentive (PLI) schemes, government sources indicated that the programmes are being viewed with undue derision despite visible benefits to domestic manufacturing, asking, “How will the industry invest in manufacturing and job creation if it doesn’t benefit?”
Referring to the impact of the PLI scheme for ACs and white goods, sources pointed out that India’s domestic value addition in AC compressors has risen to 50% from the times of complete import dependence. Sources added that the entire ecosystem of AC manufacturing has gained due to the PLI scheme, with several other parts also being made in the country.The 4th Round of the Production Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) had attracted 13 applications with a net committed investment of ₹1,914 crores in the application window from September 15 to November 10, 2025. The proposed investments cover 6 states across 13 districts and 23 locations.
Read more: India reopens PLI scheme for ACs and LED lights, application window from September 15
Among the 13 applicants, one is an existing beneficiary under the PLI Scheme for White Goods and has committed an additional investment of ₹15 crores. Nine applicants, representing 75% of the total, have applied for manufacturing Air Conditioner (AC) components with a cumulative investment of ₹1,816 crores.
The investments focus on manufacturing copper tubes, aluminium stock, compressors, motors, heat exchangers, control assemblies, and other high-value components. The remaining four applicants have proposed investments worth ₹98 crores for LED component manufacturing, including LED chips, drivers, and heat sinks.
So far, the PLI Scheme for White Goods has attracted ₹10,335 crores of committed investment from 80 approved beneficiaries. It is expected to lead to production worth ₹1.72 lakh crores and create 60,000 direct jobs across the country.
Approved by the Union Cabinet on 7th April 2021, the PLI Scheme for White Goods has a total outlay of ₹6,238 crores and aims to establish a complete component ecosystem for ACs and LED Lights in India. The scheme is projected to increase domestic value addition in the sector to 75-80%.
