I think these are very exciting times for the industry besides some challenges. We are seeing India develop as a big manufacturing hub for consumer electronics and appliances. With rising income levels and consumer aspirations, India has the potential to emerge as one of the largest markets for these products.

However, in recent times, growth is not happening as per expectations. This is due to the slowdown seen in rural as well as urban markets. Given the low penetration of various products, the expectation was that the industry’s growth would be higher. The air-conditioner segment did witness very strong double-digit growth during the summer. During festival season, the washing machines segment grew by 10-12 per cent, while categories such as LED TVs saw growth in single digits. The high growth seen for premium products post-Covid has seen a bit of slow down.

One of the reasons the industry is not seeing expected levels of growth is due to high levels of GST which adversely impacts affordability. This is challenging especially at a time when there are inflationary pressures and lower discretionary spending. We need to ensure these products become more affordable so their penetration increases. We have been in discussion with the government on reduction of GST on products such as air-conditioners and LED TVs above 32 inches. We have also been requesting for reduction in GST on energy efficient appliances as that will spur the demand for such products. We are also hopeful that the government will take steps to boost consumption in the upcoming budget. We have also recommended measures to correct inverted duty structures in certain areas besides reduction of tariffs for various commodities. At a broader level, we hope the government can look at development of clusters near the coastal zones to promote local manufacturing.

We have a very positive growth outlook for 2025. Air-conditioner segment is expected to see strong demand in the upcoming summer season just as last year. At the same time, we are also hopeful that other categories such as LED televisions, refrigerators and washing machines should see stronger growth trends. Post-Diwali, we are seeing some sluggishness in demand for ACE products and we hope that reverses.

In terms of the PLI scheme for white goods (Air-conditioners and LED lights components), 66 companies have made investments of nearly ₹7,000 crore over three phases. These applicants have set up factories in almost 54 districts. In ACs, the level of localisation has increased to almost 65 per cent and it is expected that this will gradually go up to 75 per cent. So I think, it has been a huge success. We are now requesting the government for another PLI schemefor high value components.