The Indian government is considering a flexible approach to potential joint ventures (JVs) between Indian and Chinese firms to address the surge in demand for air conditioners and refrigerators ahead of the 2025 summer season. As the need for compressors grows, the government aims to enhance local production and reduce reliance on imports.
In response to industry shortages, the government has temporarily relaxed Bureau of Indian Standards (BIS) certification rules for importing compressors from China and other markets, effective for one year. Authorities have also encouraged AC and refrigerator manufacturers to expand domestic compressor production.
In a further move, the government is reconsidering the Production-Linked Incentive (PLI) scheme for white goods, leveraging available budget allocations to strengthen the sector. Industry experts have called for increased incentives to attract high-value investments, with compressor manufacturing facilities estimated to require ₹250-400 crore in investments.
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