A day after India closed the application window for the notebook and tablet manufacturing incentive scheme, PC vendors began product production in India even before the import restrictions had yet to take effect.
According to The Economic Times and Mint, a total of 40 companies applied for India's Production Linked Incentive (PLI) scheme for IT hardware 2.0.
Global suppliers include HPE, Lenovo, Acer, Asus, Thompson, Flex, and Foxconn's Indian subsidiary Rising Stars. Local manufacturers include Padget, VVDN, Netweb, Syrma, Optiemus Technologies, Sahasra, Neolync, Panache, Sojo, and Kaynes.
Mint reported that ten of the 40 companies have begun computer production in India since July, and 25 applicants plan to build products by April 1, 2024.
Business Today quoted sources saying HP, which has led India's PC and notebook market for most of the time in recent years, may expand their manufacturing production in India by investing INR2.5-3 billion (US$30-36 million).
India first launched the PLI for IT hardware in September 2021 to encourage locally-made notebooks and tablets amid strong demands due to the pandemic, but related investments fell short of expectations, leading to the revision of the PLI scheme, which was unveiled in May 2023. To boost its domestic computer industry, India imposed license requirements for imported computers besides the incentives. These requirements will take effect in November.
Industry sources told DIGITIMES that manufacturers are ramping up exporting their products to India to avoid uncertainties brought about by the license requirement.
Under the PLI scheme for IT hardware 2.0, global manufacturers are required to invest INR5 billion in six years, while hybrid and Indian companies will have to invest INR2.5 billion and INR200 million, respectively, to be eligible for the incentives. Mint reported that those who missed the production target may face a 10% deduction from the incentives.
Most global PC and notebook vendors are collaborating with EMS manufacturers that set up facilities in India. Lenovo's products are made in India by Wingtech and Lenovo India. Flex makes products for HP. Acer builds products with Acer India and Indian EMS provider Bhagwati Products. Apple's Macbooks and iPads sold in India are imported from China and Vietnam.
India's notebook and tablets manufacturers | |
Brand | Manfuacturers |
Lenovo | Wingtech, Lenovo |
Acer | Acer, Dixon, Bhagwati |
Asus | Optiemus |
HP | Flex |
Dell | Dell |
Source: BIS, September 2023
