The room air conditioner market in India is divided into three major categories: window, split, and light commercial. Light commercial air conditioners (LCACs), which consist of ceiling mounted and floor standing products, mostly find their applications in small to medium commercial spaces. The market size for these products is estimated to be 1.05 lakh units in Fiscal Year 2019-20, having grown at a compounded annual growth rate of 19% since 2013. As the market share of light commercial air conditioners continues to rise, policies that indicate and regulate energy performance are necessary. High performing and high-quality LCACs can save consumers money and reduce national electricity usage. This paper examines the methodologies and labeling thresholds adopted for room air conditioners in Japan, China, and South Korea in order to make recommendations for an impactful labeling policy in India. The recommended labeling thresholds would reduce carbon emissions by 2.4 Mt and 2.8 TWh cumulatively through 2030.