Panasonic Life Solutions India Chairman Manish Sharma has suggested that the Indian government should introduce a special production-linked incentive (PLI) scheme for the air conditioner sector. He said there is a strong need for a separate policy that focuses specifically on manufacturing important components like compressors and motors. Sharma says this will help India reduce its dependence on imports and become self-reliant in high-value electronics manufacturing.
The government recently announced a new PLI scheme for passive electronic components, which do not include semiconductors but are still essential for electronic devices. Approved on March 28, 2025, this scheme comes with an investment of Rs 22,919 crore and is aimed at boosting the local manufacturing of items such as resistors, capacitors, and inductors. Manish Sharma welcomed this move and said it would improve India’s position in the global electronics market.
Need PLI for Air Conditioner Components
Sharma pointed out that while the passive components PLI scheme is a good step forward, there is a bigger opportunity in supporting the local production of high-value components used in air conditioners. These include compressors and motors, which are currently not manufactured at scale in India. A separate PLI scheme could help build supply chains for these parts and reduce the cost of production for domestic companies.
Manish Sharma highlighted the ongoing challenge of heavy imports in the electronics sector. He said that India imports around USD 12–13 billion worth of non-mobile electronics every year. Out of this, nearly USD 5–6 billion is spent on importing printed circuit boards (PCBs), which are essential for assembling electronic devices. These PCBs are mostly brought in from other countries due to a lack of local manufacturing.
About Panasonic India
Panasonic Life Solutions India, a part of the global Panasonic Group, plays a major role in electronics and appliances manufacturing in the country. The company has been actively supporting government initiatives like Make in India and has also invested in local manufacturing and innovation. Manish Sharma has often spoken about the need for India to become a strong player in global electronics production, not just in assembly but also in high-end component manufacturing.
What is PLI Schemes
Production-linked incentive (PLI) schemes are government programs designed to encourage companies to manufacture more in India by offering financial incentives based on output. These schemes help reduce imports and improve India’s manufacturing capabilities. The recent scheme for passive electronics is the first of its kind focused on non-semiconductor parts and is expected to give a big push to local production.
As India continues to grow as an electronics hub, experts like Sharma believe that more focused policies are required. A targeted PLI for compressors and motors will help make India a global supplier of air conditioner components. This approach will not only strengthen the domestic electronics sector but also create jobs, reduce imports, and make India more competitive in the global supply chain.
