Manufacturers of air-conditioners and refrigerators in India are expressing concerns regarding new restrictions imposed by the Department for Promotion of Industry and Internal Trade (DPIIT) on compressor imports. The restrictions, effective from May 8, limit imports to 40% of FY25 volumes for refrigerator compressors and 30% for air-conditioners, both for capacities up to two tonnes. This segment constitutes over 85% of sales. Currently, India produces nearly half of its AC compressor requirements and about 60% of refrigerator compressors, but the domestic production capacity is insufficient to meet rising demand, especially during a heatwave. Industry leaders, including Blue Star's managing director B Thiagarajan, warn that these measures may inadvertently favor companies reliant on imports, and achieving self-sufficiency in compressor production could take until the end of 2028. The annual demand for AC compressors is approximately 15 million units, while production capacity is only 7-8 million. Similarly, refrigerator compressor demand is estimated at 14.5-15 million, with local capacity falling short at 8.5-9 million units. The transition to local sourcing is complicated by the need for extensive testing and validation of new products.