HP, Dell and others to manufacture hardware in India under incentive plan
Workers inspect smartphone components at the visual inspection area of the surface mount technology workshop inside the Realme factory in Greater Noida, India, on Wednesday, June 1, 2022. Chinas Realme’s closing in on the market leaders Xiaomi, Samsung, but obstacles are at risk. a market where many have stumbled. Photographer: Anindito Mukerjee/Bloomberg via Getty Images
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US tech giants Dell, HP and China Lenovo is among the 27 companies that have received approval to manufacture IT hardware in India under a manufacturing-linked incentive scheme, as the country aims to boost domestic manufacturing and attract major investments in the value chain.
Under the PLI 2.0 Scheme for IT hardware, which was approved by the government in May, India will provide incentives to companies for products made in the country.
“IT hardware of well-known brands like Acer, Asus, Dell, HP, Lenovo, etc. will be manufactured in India,” the Ministry of Electronics and IT said in a statement on Saturday.
The scheme has a budget of 170 billion Indian rupees (about $2 billion) spread over six years and covers the manufacture of laptops, tablets, all-in-one personal computers, micro PCs and servers.
“23 out of 27 approved applicants are ready to start manufacturing on day zero,” Railway, Communications and Electronics and IT Minister Ashwini Vaishnaw told industry leaders and the media.
The companies are expected to invest a combined $360 million and create approximately 200,000 jobs, including 50,000 direct employment opportunities and 150,000 indirect employment opportunities. The Indian IT hardware market is expected to grow to $22.77 billion in 2027 from $15.52 billion in 2022.
“The IT Hardware manufacturing sector is facing a lack of equity compared to competing countries … ministry.
“The PLI 2.0 Scheme for IT Hardware is expected to continue to expand and deepen the manufacturing ecosystem by encouraging the localization of components and sub-assemblies and allowing for longer lead times in the supply chain to develop within the country,” said the ministry.
IT hardware manufacturers such as Apple supplier Fox and South Korea’s Samsung have increasingly diversified their manufacturing facilities outside of China, attracted by incentives for electronics production as well as India’s status as the world’s second-largest smartphone market. -world.