India: white goods manufacturers seek the same incentives of electronics companies


As reported on the CEAMA (Consumer Electronics and Appliances Manufacturers Association) website, the Indian government is studying a proposal to extend benefits meant for electronics makers to white goods manufacturers. This comes after several consumer durables companies approached the department of electronics and information technology with investment proposals, seeking the same incentives offered to manufacturers of electronics. Under the Modified Special Incentive Package Scheme (M-SIPS), the government provides 20-25 per cent subsidy on capital expenditure for manufacturers of electronics under 26 categories. This did not include what are termed “white goods” such as washing machines or refrigerators. An official of the department said such items were not considered under this scheme “as they had very little tech in them”. This feature is changing, with white goods having a substantial portion of electronics, such as sensors, compared to some years earlier. “It is all part of the electronification of things”, the official said. The department is still deliberating on whether white goods should be covered under M-SIPS. “The question is where to draw the line”, the official added. Panasonic, Samsung and Videocon are among the companies which have approached the department for benefits under M-SIPS to be extended to their manufacture of items such as washing machines and refrigerators. Inclusion of white goods under M-SIPS could mean an influx of significant investment towards manufacturing in the country. The Consumer Electronics and Appliances Manufacturers Association (CEAMA) recently gave a set of arguments to the department for including consumer durables under M-SIPS.