This Article is From Aug 31, 2023

38 Companies Apply To Manufacture Laptops In India: Union Minister

IT Minister Ashwini Vaishnaw said Apple has not applied under the PLI framework, but the company is already manufacturing components.

38 Companies Apply To Manufacture Laptops In India: Union Minister

Government received 38 applications for production-linked incentive (PLI) scheme 2.0 for IT hardware

New Delhi:

The government has received 38 applications for the PLI Scheme 2.0 for IT hardware of which over 25 are domestic companies, said IT and communications Minister Ashwini Vaishnaw on Wednesday during a press conference.

This announcement comes days after the government announced restrictions in laptop imports from November.

All of them are driven to gear up manufacturing and bring in supply chains. Mr Vaishnaw noted that companies like HP, Dell, Lenovo, Thompson, Acer, and Asus will be manufacturing laptops under the scheme. HP, VVDN, Lenovo will be manufacturing servers.

Apple and Samsung however aren't part of the scheme yet.The window for applying for the scheme closed on Wednesday night.

This move should see a significant reduction in the import of laptops and PCs, Mr Vaishnaw said, adding 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 per cent of laptop needs in India are met through China, Singapore and Hong Kong.

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

The minister said incremental production expected is around Rs 3.35 lakh crore and expected direct employment is around 75 thousand.

"Upcoming Dixon factory in Noida will alone employ 20,000 people," he said.

Manufacturing of laptops will begin by April 2024, officials said companies such as Dell are also migrating to PLI. Companies such as Apple, Samsung, Foxconn and Dixon have done well in manufacturing of smartphones, and this is what the government is hoping to achieve with laptops too.

Pankaj Mohindroo, chairman of the India Cellular &Electronics Association (ICEA) said it is imperative that Global industry's operations are not even mildly disrupted

"The IT hardware vertical is the 2nd largest in electronics after smartphones and a strong presence in this segment is essential...Lead firms of GVC's and Emerging Indian champions will be the 2 engines of growth," he said.

When asked if India is optimising on big players quitting China with its economy slowing down, Mr Vaishnaw said India is emerging as a trusted value chain partner.

"Many of these companies will use the semiconductors manufactured in India. In fact they were pleased we are starting with the manufacturing of memory first which is crucial for laptops. Companies have shared their detailed proposals. We are optimistic more will join," he said. India has signed an MoU with global chip maker Micron Technology to manufacture semiconductor chips in India. The factory will come up in Sanand in Gujarat.

Others applicants who have shown interest in the manufacturing of laptops include Taiwanese electronics giant Foxconn and American company Flextronics. Eom