38 tech giants going to manufacture laptops in India

IT and Communications Minister Ashwini Vaishnaw said that the government has received 38 applications for the PLI Scheme 2.0 for IT hardware of which over 25 are domestic companies. The minister noted that companies like HP, Dell, Lenovo, Thompson, Acer, and Asus will manufacture laptops under the scheme. HP, VVDN, and Lenovo will also be manufacturing servers. 

This announcement comes days after the government announced restrictions on laptop imports from November. Apple and Samsung however have not yet announced their participation in the scheme. The window for applying for the scheme closed on Wednesday night. 

Vaishnaw said that this move should see a significant reduction in the import of laptops and PCs. He added that "import restrictions are not a worry anymore."  

"I spoke to all the applicants and they didn't raise any concern," he said.  

Currently, around 70 percent of laptop needs in India are met through China, Singapore, and Hong Kong. 

Government Plans Regarding Laptop Manufacturing

The government to incentivize laptop, tablet, and server makers for manufacturing in India has boosted benefits under the production-linked incentive (PLI) scheme to ₹ 17,000 crore against the ₹ 7,350 crore announced earlier. Many top firms had then refused to be part of the scheme as manufacturing in India wasn't incentivized enough, and importing laptops was not a problem. 

Officials have announced that companies would manufacture laptops starting for April 2024. Notably, prominent technology companies, including Dell, are in the process of transitioning to the Production-Linked Incentive (PLI) scheme. Companies of the stature of Apple, Samsung, Foxconn, and Dixon have already made significant strides in the manufacturing of smartphones within the country. The government's ambition is to replicate this success in the laptop manufacturing sector as well.

The minister emphasized that India is steadily establishing itself as a reliable and trusted partner within the global value chain. This indicates a promising outlook for the nation's role in the tech industry's supply chain and reinforces the belief in India's potential to become a key player in the production of laptops, mirroring its achievements in the smartphone manufacturing arena.