India’s Electronics Manufacturing Gets a Boost as 32 Companies Apply for Incentive Program

In a significant development for India’s electronics manufacturing sector, more than 32 international electronics companies have submitted applications to participate in the country’s incentive program aimed at promoting the production of laptops, tablets, and servers on its soil. The announcement was made by Information Technology Minister Ashwini Vaishnaw on Wednesday. This surge in interest follows recent government measures to restrict laptop imports.
Under the leadership of Prime Minister Narendra Modi, the Indian government has been actively promoting domestic manufacturing capacity through its “Make in India” initiative. This has entailed both the establishment of standalone units by global firms and collaborative ventures with Indian companies.

The electronics companies’ applications fall under India’s $2 billion production-linked incentive (PLI) programme, which specifically targets the information technology hardware sector. The program was introduced in May to bolster the country’s technology manufacturing ecosystem, Reuters news report said.

In a noteworthy move earlier this month, India unveiled plans to institute a licensing requirement for imports of laptops, tablets, and personal computers. Analysts widely interpret this step as a strategic maneuver to stimulate local production and reduce dependence on imports.

Prominent among the companies seeking to establish manufacturing operations in India are industry giants like Hewlett Packard Enterprise (HPE), Dell Technologies, Asus, Acer, and Lenovo. Their involvement signals a growing confidence in India’s potential as a manufacturing hub.

According to Minister Vaishnaw, the PLI scheme focusing on IT hardware is poised to attract around 24.3 billion rupees (approximately $294.24 million) of incremental investment. Furthermore, it is projected to create an estimated 75,000 direct job opportunities, providing a much-needed boost to the country’s employment landscape.

As India continues to position itself as an attractive destination for electronics manufacturing, these recent developments underscore the nation’s growing stature in the global technology industry. The influx of major international players also signifies a vote of confidence in India’s policy initiatives and its capacity to emerge as a vital player in the electronics manufacturing arena.