- The PLI scheme of the Modi government is encouraging many companies to start manufacturing in India and HP is the next in line.
- The Global laptop market is worth more than 100 billion dollars and is primarily dominated by American, Chinese, and Taiwanese companies.
- PM Modi’s PLI scheme for laptops and tablets manufacturing will not make India ‘Aatmanirbhar’ in the sector but also has a huge potential for exports.
HP, the American giant with a 22% global market share in laptops, is all set to start manufacturing in India. “The enabling environment for electronics production in India is making us look at strengthening our commitment here. We are investing and widening our locally made product portfolio and will not shy from making further investments as we go deeper with local manufacturing,” Ketan Patel, MD of HP in India, told TOI.
In India, the market share of HP is even higher at around 32% and the revenue of the company is expected to cross 3 billion dollars soon. The PLI scheme of the Modi government is encouraging many companies to start manufacturing in India and HP is the next in line.
The Global laptop market is worth more than 100 billion dollars and is primarily dominated by American, Chinese, and Taiwanese companies. India, despite being one of the largest consumers of laptops and tablets, does not have a single company among the largest laptop manufacturers. Lenovo, the Chinese giant, is the market leader with more than 20 per cent share of the global market and an even larger share of the Indian market.
Also Read: World Bank in awe of India’s PLI scheme as the nation looks all set to become the world’s fastest-growing economy
Lenovo is followed by HP, the American company that pioneered home computers. HP, too, has more than 20 per cent of the market share followed by Dell, another American company. The other two large companies in the market apart from Apple, are Acer and Asus, which are Taiwan-based.
Indians purchase crores of laptops every year. According to Indian Cellular and Electronics Association (ICEA), laptops and tablets have huge potential for exports. “High potential for exports… laptops and tablets have a large global demand compared to India’s own. India may target to occupy 26% of the global supply base of laptops and tablets by 2025, which will deepen its penetration into the global value chains for these electronics,” said ICEA.
PM Modi’s PLI scheme for laptops and tablets manufacturing will not make India ‘Aatmanirbhar’ in the sector but also has a huge potential for exports. Given the fact that the demand for electronics items including laptops is set to grow in the coming years as education, and work move online, building the domestic capacity in manufacturing laptops is a must.
Also Read: Under the PLI scheme, Samsung and Apple will boost the Indian manufacture sector
Modi government’s PLI scheme is India’s giant leap to become a major smartphone manufacturer which aligns well with its aim to be a global manufacturing hub in the coming years. It is slated to create more than a million jobs in India, of which 3,00,000 will be created directly and an additional 9,00,000 will be created indirectly.
The entry into the Indian smartphone manufacturing industry is a huge boon for Apple and Samsung. With over one billion wireless subscribers and more than 350 million users still reliant on basic phones, India offers a huge market to tap in. A rapidly rising middle class further creates ample space for smartphone manufacturers.
Also Read: PLI Scheme inspires Japanese multinational Daikin to invest Rs 1,000 crore in India
Apple is considering moving 20 per cent of its production capacity out of China. And it couldn’t have found a better opportunity than the PLI scheme. This could lead to the Silicon Valley Company’s contract manufacturers engaging their presence in India.
Similarly, the laptop manufacturers, white goods manufacturers, automobile manufacturers are also moving their factories out of China in order to benefit from the PLI scheme. Very soon, India would become AatmaNirbhar in several areas – from semiconductors to laptops, automobiles to medicines. And in this unstable world, AatmaNirbharata is key to success.
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