Workers inspect smartphone components in the visual inspection area of the surface mount technology workshop inside the Realme factory in Greater Noida, India, Wednesday, June 1, 2022. China’s Realme is getting closer to market leaders Xiaomi, Samsung, but obstacles loom in dangerous situations. market where many have stumbled. Photographer: Anindito Mukerjee/Bloomberg via Getty Images
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American tech giants Dell, HP and China Lenovo are among 27 companies that have received permission to manufacture IT hardware in India under a production-linked incentive programas the country aims to boost domestic manufacturing and attract large investments across the value chain.
“Computer hardware of well-known brands like Acer, Asus, Dell, HP, Lenovo, etc. will be manufactured in India,” the Ministry of Electronics and IT said. statement SATURDAY.
The program has a budget of 170 billion Indian rupees (about $2 billion) spread over six years and covers the manufacturing of laptops, tablets, all-in-one personal computers, micro-PCs and servers.
“23 out of 27 approved applicants are ready to start manufacturing from day one,” Minister of Railways, Communications and Electronics Ashwini Vaishnaw told industry leaders and media.
Companies are expected to collectively invest $360 million and create approximately 200,000 jobs, including 50,000 direct employment opportunities and 150,000 indirect employment opportunities. The Indian computer hardware market is expected to grow to $22.77 billion in 2027, compared to $15.52 billion in 2022.
“The hardware manufacturing sector faces the absence of a level playing field compared to competing countries…There is a need to put in place a mechanism to compensate for manufacturing handicaps compared to other major manufacturing economies “, according to the Ministry.
“The PLI 2.0 program for IT hardware is expected to result in the broadening and deepening of the manufacturing ecosystem by encouraging localization of components and subassemblies and allowing a longer duration to develop the supply chain in the country.” said the ministry.
Computer hardware manufacturers such as Apple supplier Foxconn and South Korea’s Samsung have increasingly diversified their manufacturing bases outside of China, attracted by incentives for electronics production as well as the fact that India is the world’s second-largest smartphone market.