Global Laptop Makers Look Beyond China: India Gains ₹17,000 Crore Boost Under PLI Scheme

India’s Production-Linked Incentive (PLI) scheme for IT hardware is rapidly reshaping the global supply chain landscape. As geopolitical tensions escalate between China and the US, global laptop manufacturers such as Asus, HP, and MSI are actively shifting parts of their production lines from China to India. The move is not only a strategic hedge against overdependence on China but also a strong indication of India’s rising manufacturing prowess.

₹17,000 Crore Push Towards Domestic Manufacturing

The second phase of India’s PLI scheme for IT hardware, launched on May 29, 2023, comes with a substantial budgetary allocation of ₹17,000 crore spread across 6 years. It offers an average incentive of 5% on net incremental sales of domestically manufactured laptops and devices, making India an increasingly attractive destination for tech production.

Currently, India’s local laptop manufacturing stands at around ₹8,517 crore (US$ 1 billion), while imports total approximately ₹93,687 crore (US$ 11 billion) in FY24. With PLI-driven investments, this gap is expected to shrink over time.

Read More: These Nifty 500 Stocks to Benefit from Change in PLI Scheme for Telecom and Networking Products

Global Brands Step Up Local Manufacturing

Several major global players have already set up operations on Indian soil. Asus has launched a new assembly line in collaboration with VVDN Technologies at Manesar, with each line capable of producing one laptop every 240 seconds.

Meanwhile, MSI has entered into a partnership with Syrma SGS, a Gurugram-based electronics manufacturer, to begin local production. HP is deepening its presence through a tie-up with Dixon Technologies, which is investing more than Rs 1,000 crore (US$ 117 million) in a new facility in Tamil Nadu. This unit will also manufacture laptops for Lenovo and Asus, strengthening India’s role as a production hub.

Local Ecosystem Strengthens with Global Backing

The PLI scheme offers more than just financial incentives. Companies meeting the scheme’s localisation thresholds—20–50% local content—can qualify for government tenders, creating further incentive for foreign firms to collaborate with Indian partners.

Indian firms also gain from reduced tariffs and a growing ecosystem that is increasingly self-reliant. At present, local production can substitute 10–20% of imports, but this figure is expected to grow as more firms shift to local sourcing and manufacturing.

Conclusion

The PLI scheme is helping India rewrite its role in the global tech manufacturing narrative. As global laptop makers seek alternatives to China, India’s combination of incentives, capacity, and market potential is drawing in increased investment. While the road ahead involves scaling capabilities and enhancing value-chain integration, India is well on its way to becoming a pivotal player in global electronics manufacturing.

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