[Answered] What challenges and opportunities does the mandatory ‘star rating’ program present for the Indian fan market? How can India leverage its domestic market to promote energy-efficient products and reduce import dependence?

Introduction: What is a star rating program?

Body: Highlight challenges and opportunities related to the program.

Conclusion: Way forward

The mandatory Standards and Labelling (S&L) program, popularly known as the ‘star-rating’ program was made mandatory for ceiling fans in May 2022. The program was implemented by the Bureau of Energy Efficiency (BEE) under the Ministry of Power, & aims to promote energy-efficient products and reduce energy consumption for appliances & electronics.

Some of the challenges of this program:

  • High cost: Energy-efficient fans often come at a higher upfront cost. Consumers might be hesitant to pay more, even if it means long-term savings on electricity bills.
  • Import dependence: A new type of fan like a brushless DC (BLDC) motor, which meets the ‘5-star’ performance benchmark has a high import dependency for components.
  • Initial Resistance: Implementing mandatory star ratings might face initial resistance from manufacturers and consumers who are accustomed to less efficient but cheaper products. Convincing them to invest in more energy-efficient fans may be a challenge.
  • Market Competition: Indian manufacturers will face increased competition from international brands that have been producing energy-efficient products for a longer time. Local manufacturers may need to upgrade their technology and processes.

Some opportunities for the Indian fan market:

  • Energy Savings: The primary objective of the star rating program is to reduce energy consumption. Energy-efficient fans can significantly lower electricity bills for consumers, making them an attractive option.
  • Environmental Benefits: Promoting energy-efficient products aligns with India’s goals of reducing carbon emissions and combating climate change. It contributes to a more sustainable future.
  • Technology Adoption: The program can drive innovation and encourage manufacturers to develop more energy-efficient technologies, which can be a significant competitive advantage.

How can India leverage its domestic market to promote energy-efficient fans?

  • Tech agnostic: This policy offers manufacturers a free hand to offer different technologies to consumers so that they can compete and market transformation is cost-effective.
  • Quality Control and Standards: Strengthen quality control measures, effective pricing mechanisms & balance, and standards to ensure that domestic products meet the required energy efficiency criteria.
  • Local manufacturing: Under the Atmanirbharta program the need is to boost domestic manufacturing capacity for high-efficiency fans. Collaborations between government agencies, academic institutions, and private companies can lead to research in developing cutting-edge technologies for energy-efficient fans.
  • Export promotion: India can leverage its massive domestic market to achieve economies of scale for finished products and components, and expand into the export market under “Made in India”.


Energy efficient fans are necessary to help the population with soaring electricity bills & heat stress while at the same time central to India’s clean energy transition and can play a part in its economic growth.

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