HP India is set to begin local production of laptops, desktop PCs, and all-in-one systems in May, in collaboration with Dixon Technologies, as reported by Moneycontrol. This initiative aims to nearly double HP’s manufacturing output compared to last year, according to Ipsita Dasgupta, senior vice-president and managing director of HP India. The company’s annual production target will be almost double the previous year’s, despite not having the Production Linked Incentive (PLI) in place at that time. HP is one of 27 companies approved under the ₹17,000-crore PLI scheme for IT hardware, launched in 2023.

Addressing concerns about India’s new import management system for electronics, highlighted in a recent US trade report, Dasgupta expressed confidence in HP’s operations in India. She emphasized that the company’s business strategy aligns with India’s goal to become a key player in the global supply chain. HP India plans to progressively increase its local production share. While HP is focused on enhancing local value addition, Dasgupta did not confirm whether the company would apply for the new ₹23,000-crore component-focused PLI scheme.

On the business front, HP is experiencing significant growth in both the commercial and consumer segments. Demand from large enterprises, IT/ITeS firms, and India Inc. is driving growth in the commercial sector, while small and medium-sized businesses, especially in non-metro areas, are contributing to sales growth. To support MSMEs, HP has launched ‘HP Connects,’ customer engagement centres in MSME hubs offering IT infrastructure and consulting services.

In the consumer segment, gaming, content creation, and education are key areas of growth, with strong performance in the gaming PC sector. Freelancers and online educators are increasingly opting for high-performance laptops over mobile devices. Spending on technology in India is often driven by income generation and educational needs.

India’s growing role in global IT hardware manufacturing is evident, as many international laptop brands are shifting production from China to Indian partners. This shift is supported by the ₹17,000-crore PLI scheme and rising interest from global companies due to ongoing trade tensions between the United States and China. This uncertainty has led companies to fast-track agreements with Indian manufacturers.

Indian electronics manufacturers are enhancing their capabilities, benefiting from lower import duties and PLI incentives, which make India an attractive base for manufacturing and government procurement tenders that require local content. Despite the progress, India’s domestic manufacturing currently meets only a small portion of the demand. In FY24, laptop imports were valued at approximately $11 billion, while local production accounted for about $1 billion, or 10-20% of the total.