- 19 Mar 2025
- ICICIdirect Research
THE INDIAN GOVERNEMENT HAS EXEMPTED CERTAIN CRITICAL COMPONENTS OF AIR CONDITIONERS AND REFRIGERATORS
News: As per media reports, The Indian governement has exempted certain critical components of air conditioners and refrigerators from mandatory Bureau of Indian Standards (BIS) certification to prevent potential shortage during the upcoming summer. The Department for Promotion of Industry and Internal Trade (DPIIT) lifted the certification requirements from grooved copper tubes until June 30, 2025 and for AC compressors with capacities of 2 tonnes or more until February 10, 2026.
View: Currently India’s domestic consumption for air compressor ranges approx 11 million. Out of which only 40 - 45% of the demand of AC compressors is met domestically and it depends largely on Chinese suppliers. Last year, BIS certification delays have further disrupted supply chains, with nearly 50 Chinese component suppliers not receiving recertification as late as November 2024. With the government providing relief over BIS certification it is expected to positively impact the companies like Bluestar, voltas, Amber, PG Electroplast, Johnson Controls-Hitachi to manage its supply chain.
Impact: Positive