As India eyes a power-saving push by capping air conditioner settings at 20°C, appliance majors like Blue Star, Godrej and Akai take sharply different stands on comfort, cost and climate logic

The Indian government’s proposal to cap the minimum temperature setting on air conditioners at 20 degree Celsius (°C) is triggering both warm applause and cold resistance from appliance majors. While some see it as a timely climate move to reduce energy load, others argue it risks ignoring India’s climatic diversity and consumer behaviour.

Girish Hingorani, Vice President, Marketing (Cooling and Purification Appliances) and Corporate Communications, at Blue Star, does not see the cap as a major concern. “20°C is already a very low temperature,” he said, explaining that most consumers mistakenly believe setting ACs at 16°C cools faster, when in reality, compressors work just as hard regardless, until the set temperature is achieved.

“The human body is ideally comfortable at 24 to 25°C. Using ACs at 18°C and then covering up with blankets is not just wasteful, it’s bad for the environment,” Hingorani added. He emphasised that even in extreme heat zones like Delhi, the time to reach the target temperature may differ, but comfort remains the same once 20°C is achieved.

Godrej Appliances agrees, noting that the restriction is unlikely to affect most users. “Almost 75 per cent of AC users already set the temperature above 20°C during summers,” said Kamal Nandi, Business Head & EVP at Godrej. “So we welcome this initiative. It supports long-term environmental and energy-saving goals.”

But not everyone is on board. Anurag Sharma, Managing Director and CEO of Akai India, said that to date, there is no conclusive India-specific data that justifies a hard cap at 20°C.  He added that energy savings depend on a matrix of factors, usage habits, insulation, appliance type, and even occupancy patterns. “Without real-world, regionally segmented data, such mandates risk becoming symbolic rather than effective.”

Cost, Compliance And Consumer Behaviour
Sharma found the move ‘impractical’, especially for regions where summer temperatures soar past 45°C. “Comfort is not a luxury in such zones – it is a necessity. A uniform cap ignores ground realities,” he said.

Sharma warned against ‘one-size-fits-all’ policies in a country as diverse in its climate as India. “What works in coastal Kerala may fail in Rajasthan. Usage patterns vary drastically across households. Flexibility would be smarter than rigidity.”

From a manufacturing standpoint, Hingorani noted that enforcing the 20°C cap would require only minor software tweaks – no additional hardware, no extra cost. “It’s just a programming change in the remote and indoor unit PCBs. No compliance burden at all,” he clarified.

But Sharma countered that while implementation might be simple, the policy adds to an already dense regulatory framework. The industry is pushing boundaries in energy efficiency, inverter technology, and green refrigerants. “Instead of a hard limit, what we need is a collaborative, innovation-driven approach, one that encourages brands to build smarter, more sustainable appliances, not just restricts them,” he suggested.

Enforcement or Empowerment?
Sharma raised a bigger question: Do we need caps – or do we need smarter defaults, nudges, and eco-modes that guide users? He added, “Hard caps are nearly impossible to enforce at the consumer level. The smarter path lies in technology-led nudges, like default settings at 24°C, eco-modes, energy-saving prompts, and smart usage insights. At Akai, we believe that empowering consumers with data and intelligent features drives far more impact than restrictions. Let’s move from regulation to transformation.”

Beyond temperature limits, the industry wants policy support where it hurts most – the wallet. “A Five-star AC can save 15–20 per cent more power than a three-star model. But price remains the biggest barrier,” Hingorani explained, advocating for a government-backed incentive scheme.

“If there is a subsidy or incentive by the government to close the Rs 7,000 – 8,000 price gap, Five-Star adoption could skyrocket. That would save more power than any temperature cap ever could,” he argued.

While manufacturers engage in this cooling debate, the government’s move could redefine how Indians beat the heat. Whether it’s a masterstroke for sustainability or a misstep on comfort, one thing is certain, this thermostat tug-of-war is just beginning.