New Delhi, May 09th, 2026: India Cellular and Electronics Association (ICEA) compliments the Government of India for adopting a balanced, pragmatic, and industry-responsive approach by providing calibrated relaxation for select compressor categories until March 31, 2027. The Quality Control Amendment Order, 2026, issued by DPIIT after rigorous industry consultations, provides conditional relaxation for sourcing Compressors from relevant geographies. The decision addresses key supply chain and manufacturing concerns in segments where domestic manufacturing capacities are presently limited or commercially unviable. The notification provides calibrated relief for critical compressor categories, including fixed-speed compressors for air conditioners below 7000W and compressors above 2 TR used in commercial air-conditioning applications. The decision addresses key supply chain and manufacturing concerns in segments where domestic manufacturing capacities are presently limited or commercially unviable.
ICEA had requested DPIIT for a calibrated, product-specific extension of the QCO relaxation for fixed-speed compressors used in air conditioners below 7000W and compressors above 7000W used in commercial air-conditioning applications. We highlighted that the market is rapidly transitioning toward inverter technologies, with fixed-speed ACs now accounting for only around 15% of the total market and expected to decline further, while most recent industry investments have been directed toward inverter compressor manufacturing. The association also noted that domestic installed capacity for fixed-speed compressors remains significantly below market demand, and the commercial AC segment continues to be highly import-dependent due to low market volumes, diverse capacity requirements, and limited viability for immediate large-scale domestic manufacturing investments.
ICEA actively engaged with DPIIT and relevant stakeholders over the past several months, emphasizing the need for a calibrated localisation roadmap that ensures manufacturing continuity alongside phased domestic capacity creation aligned with evolving market realities. The calibrated relaxation notified by the Government provides the industry with a critical transition window to strengthen supply chains, scale investments, and support gradual indigenisation of advanced compressor technologies without disrupting ongoing manufacturing operations.
Commenting on the development, Mr. Pankaj Mohindroo, Chairman, ICEA, said:
“Government’s decision reflects a pragmatic and industry-aligned approach toward balancing manufacturing continuity with long-term localisation objectives. This intervention provides the necessary transition period for the industry to build capacities, deepen supply chains, and progressively strengthen domestic manufacturing capabilities in advanced compressor technologies.”
ICEA appreciates the visionary and consultative approach adopted by DPIIT
The decision reflects a strong commitment towards nation-building, strengthening India’s manufacturing competitiveness, enabling supply chain resilience, and supporting the larger vision of Atmanirbhar Bharat through calibrated and industry-aligned policy interventions
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