In a strategic move aimed at bolstering its position in the global technology landscape, India is gearing up to transform into a major IT hardware manufacturing hub. The Indian government’s recent announcement that 27 companies have received approval under the upgraded Rs 17,000 crore Production-Linked Incentive (PLI) scheme for IT hardware marks a pivotal moment in the country’s journey toward bolstering domestic production. The latest developments in the country signal a paradigm shift, as the government and private sector join forces to capitalize on this opportunity.
Strategic step to establish India as a formidable player in the global IT hardware manufacturing landscape:
The Union Minister for Electronics and Information Technology, Ashwini Vaishnav, highlighted the transformative impact of this initiative. The Union Minister believes that such an initiative would help the country to emerge as a big force in manufacturing PCs, servers, laptops, and tablets. The move is not merely an economic strategy but a strategic step towards establishing India as a formidable player in the global IT hardware manufacturing landscape.
Dell, HP, Lenovo, Acer, Asus, Lava, Thomson, and Foxconn are among the 23 companies of the total 27 companies that are ready to start manufacturing from day zero. Under the PLI scheme, these approved companies are poised to invest Rs 3,000 crore, signifying their commitment to the growth and development of the Indian manufacturing sector.
How manufacturing IT hardware in India will be beneficial?
- Manufacturing IT hardware in India can result in cost savings due to lower labor costs compared to many other developed countries.
- The expansion of IT hardware manufacturing in India will create jobs across various skill levels, from assembly line workers to engineers and technicians reducing unemployment rates while boosting the overall economy.
- Local manufacturing of IT hardware will enhance supply chain resilience by reducing dependency on imports for critical IT components.
- A robust domestic supply chain can mitigate the impact of global disruptions, ensuring a steady and reliable flow of IT hardware.
- Manufacturing in India will provide companies with easier access to the vast Indian market, enabling them to tailor products to local preferences and needs.
India’s push for domestic production of IT hardware:
The primary drive behind the government’s push for domestic production of laptops, PCs, tablets, servers, and other IT hardware is the nation’s substantial reliance on China for both fully built units and components. The geopolitical and economic ramifications of such dependence have become increasingly apparent, prompting India to diversify its supply chains and fortify its position as a self-reliant manufacturing hub.
The upgraded PLI scheme aims to incentivize and support companies engaged in the production of IT hardware, fostering a conducive environment for growth and sustainability. By providing financial incentives linked to the incremental production of goods, the government is encouraging companies to scale up their operations and contribute to the vision of an Atmanirbhar Bharat (self-reliant India).
India is on the cusps of emerging as a key player in the global IT hardware market:
India’s initiative to become a major IT hardware manufacturing hub through the upgraded PLI scheme is a testament to the government’s commitment to fostering economic growth, innovation, and self-reliance. Simultaneously, the government emphatically stresses that companies must either commence manufacturing within the country or adhere to the ‘trusted source’ standard, implying the need to source products from regions outside of China. As the approved companies gear up to make substantial investments, the nation stands on the cusp of transforming its manufacturing landscape and emerging as a key player in the global IT hardware market.