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Electronics

India builds global AC hub with subsidies luring Daikin and others

Expanding local production base, New Delhi sets sights on exports

A worker assembles an air conditioning unit at a Daikin plant in the Indian state of Rajasthan.   © Reuters

OSAKA/TOKYO -- India is establishing itself as a global center for air conditioner production, thanks largely to government incentives that have spurred expansion by companies including Daikin Industries, a top player in the South Asian country.

New Delhi wants Daikin and its rivals to not only meet India's needs, but also use the country as an export base. India's diverse climate makes it an ideal test bed for technologies to meet the needs of emerging Asian and African economies set to drive demand for air conditioning in the coming years.

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