Panasonic India Head Calls for Separate PLI Scheme for Compressors, Motors to Boost PCB Manufacturing
Panasonic India chief Manish Sharma has emphasized the urgent need for a separate production-linked incentive (PLI) scheme targeting the air conditioner segment, particularly for high-value components like compressors and motors — a sentiment echoed by the broader industry.
Commenting on the government’s recent PLI scheme for passive (non-semiconductor) electronics components, Sharma, who is also Chairman of Panasonic Life Solutions India, said the move will bolster industry growth and enhance India’s competitiveness in global markets.
On March 28, the government approved a PLI scheme worth ₹22,919 crore focused on manufacturing passive electronic components — the first such initiative in this sector.
Currently, India imports $12–13 billion worth of non-mobile electronics annually, including $5–6 billion of printed circuit boards (PCBs) for local assembly, Sharma noted.
“The industry is now being encouraged to start manufacturing aggregated components such as heat sinks, passive components, capacitors, and resistors,” Sharma told PTI on the sidelines of Panasonic’s first smart home experience center launch.
He stressed that for India to truly advance its domestic component manufacturing, it must prioritize local PCB production. “If components are sourced and populated elsewhere, achieving viable local manufacturing will be difficult,” said Sharma, who also chairs FICCI’s ‘Electronics & White Goods Manufacturing’ committee.
He acknowledged, however, that semiconductor manufacturing remains a larger challenge.
Earlier this year, the industry body CEAMA had also pushed for a second round of PLI for air conditioners to raise domestic value addition beyond 70%.
Responding to this, Sharma said, “I strongly support it. It is the need of the hour.” He added that the air conditioner industry had already demonstrated the ability to aggregate demand quickly, helping to catalyze rapid sectoral growth.
“The original plan was to achieve this transformation in six years, but it happened in just three and a half years,” Sharma said, underlining the importance of continued policy support.
The government had earlier introduced a PLI scheme for white goods (air conditioners and LED lights) in April 2021, with an outlay of ₹6,238 crore, to be implemented through 2028-29. As per a government release in January, 84 companies under the White Goods PLI Scheme are expected to invest ₹10,478 crore and generate production worth ₹1,72,663 crore during the scheme period.
“PLI offers a transitional boost for three to four years, helping the industry achieve economies of scale and global competitiveness,” Sharma said. “That’s why I am a strong supporter of such incentives.”
