Global laptop brands tap India as China risk grows, Production-Linked Incentive (PLI) gains traction

India’s Production-Linked Incentive (PLI) scheme encourages global laptop brands such as Asus, HP, and MSI to shift production from China to India, boosting domestic manufacturing and ecosystem development. This strategic pivot comes amid escalating trade tensions between China and the US. India offers a competitive edge to global brands. Indian manufacturers are enhancing their production capabilities and leveraging lower tariffs to attract global partners. They also benefit from meeting PLI targets, qualifying them to participate in government tenders requiring 20-50% local content. India’s domestic capacity can currently offset 10-20% of total laptop imports, valued at approximately Rs. 93,687 crore (US$ 11 billion) in FY24. Local laptop production is around Rs. 8,517 crore (US$ 1 billion). 

Taiwanese brand Asus recently launched an assembly line in collaboration with VVDN Technologies at Manesar. A single assembly line at the facility can produce a new laptop every 240 seconds. Meanwhile, MSI has partnered with Gurugram-based Syrma SGS to begin local manufacturing. Dixon Technologies is investing over Rs.1,000 crore (US$ 117 million) in a new facility in Tamil Nadu, where it will manufacture laptops for HP. The company has also signed agreements to manufacture laptops for Lenovo and Asus at this new site. The second phase of the PLI scheme for IT hardware, launched on May 29, 2023, carries a budgetary allocation of Rs.17,000 crore (US$ 2 billion) over six years. It offers an average incentive of 5% on net incremental sales of domestically produced devices. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.