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AC and refrigerator makers warn compressor import curbs could spark shortages later this year

India
Published on 15 May 2026
AC and refrigerator makers warn compressor import curbs could spark shortages later this year

Quota limits tied to FY25 volumes could squeeze stock

Air-conditioner and refrigerator makers in India are warning that new restrictions on compressor imports may trigger shortages later in the year. The DPIIT order links this fiscal’s imports to FY25 volumes, allowing tighter caps for AC and refrigerator compressors and setting higher limits only above two-tonne capacity. Industry says domestic compressor production—especially above two tonnes—remains too low, while products need months of testing, leaving little room to switch suppliers quickly.

  • DPIIT’s May 8 order ties current-year compressor imports to FY25 volumes
  • Refrigerator compressors face a 40% FY25-volume cap for imports up to two tonnes
  • AC compressors face a 30% FY25-volume cap for imports up to two tonnes
  • For capacities above two tonnes, import caps rise to 90% for both ACs and refrigerators
  • India makes nearly half AC compressor needs locally and about 60% of refrigerator compressors
  • Industry estimates show demand gaps of about 15m vs 7-8m AC compressors and 14.5-15m vs 8.5-9m refrigerator compressors
Read the full story at The Economic Times

This summarization was done by Beige for a story published on The Economic TimesThe Economic Times

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