AC Imports Plunge By 87% in January
India’s decision to promote domestic manufacturing by restricting imports of air-conditioners led to a sharp 87% fall from 553,000 units in January last year to 74,000 in the month this time, prompting Japanese manufacturers to protest in New Delhi. Several Japanese AC manufacturers have raised this matter through their embassy but have been “advised” to set up facilities in India as these restrictions are part of the government’s Make in India policy. On October 15, 2020, the Directorate General of Foreign Trade, an arm of the ministry of commerce and industry, banned the import of air-conditioners with refrigerants. The notification moved both window and split ACs from the “free” to the “restricted” category. “Moving ACs in the restricted category would mean an importer has to seek import licence from the government. The purpose of this move is to check the influx of imported ACs and encourage domestic production. The government has asked Japanese firms to consider setting up manufacturing units in India and avail help, including financial support under the production-linked incentives (PLI) scheme.