A total of 44 IT hardware manufacturers, including well-known global PC producers, have officially registered for the manufacturing of laptops, tablets, and personal computers within India, according to an official source on Saturday.
While not disclosing specific company names, the official expressed confidence that the success achieved in mobile phone manufacturing under the Production Linked Incentive (PLI) scheme will be mirrored in the realm of IT hardware production in the country.
The source mentioned that leading laptop companies have enrolled for the PLI scheme, and several of them are prepared to initiate manufacturing activities in India at any given moment. Global server companies have also expressed their desire to establish India as a key export hub for servers.
The deadline for IT hardware manufacturing under the Rs 17,000-crore PLI scheme has been fixed by the government as August 30.
In the personal computer segment for the June 2023 quarter, Lenovo, HP, Dell, Apple, and Acer were the top five companies, as reported by Counterpoint Research. According to Research Director Tarun Pathak, the overall laptop and PC market in India contributes nearly USD 8 billion annually, with around 65 percent of units being imported.
Additionally, starting from November 1, the government has announced plans to allow the import of laptops, tablets, and personal computers with valid licenses in the restricted category.
A Gururaj, Managing Director of Optiemus Electronics Ltd (OEL), emphasized that the push for IT hardware manufacturing in India began during PLI 1.0 and has further flourished with PLI 2.0. He anticipates that local production of IT hardware devices will meet 60-65 percent of domestic demand within the next 2-3 years.
Hari Om Rai, Co-founder, Chairman, and Managing Director of Lava International, welcomed the government’s decision to restrict imports through valid permits. Rai highlighted the positive impact on the economy, job creation, and the electronics supply chain, while also praising the government for ensuring supply chain stability.
The government’s approach was commended by Vinod Sharma, Chairman of the CII National Committee for Electronics and Managing Director of Deki Electronics. He noted that the PLI scheme’s incentives for locally manufactured components will contribute to the growth of the domestic components ecosystem.
Sharma also supported the government’s imposition of restrictions on imports, emphasizing the importance of sourcing devices from trusted and secure origins to prevent potential security risks associated with imported IT hardware.