HP India to Begin Local Production of Laptops and PCs in May, Targets Significant Growth
New Delhi (The Uttam Hindu): HP India is set to begin local production of laptops, desktop PCs and all-in-one systems in May through a strategic partnership with Dixon Technologies. This move is expected to significantly boost HP's manufacturing output, with a target nearly double that of the previous year, according to Ipsita Dasgupta, Senior Vice-President and Managing Director of HP India.
HP India is one of the 27 companies approved under the ₹17,000-crore Production Linked Incentive (PLI) scheme for IT hardware, which was introduced in 2023. Dasgupta emphasized that the company’s target for the year is almost double what was achieved last year, even without the support of PLI.
In response to concerns regarding India’s new import management system for electronic devices, which was recently flagged in a US trade report, Dasgupta expressed confidence in HP’s operations in India. She also highlighted the company’s commitment to increasing its share of India-based production year after year, as part of its broader vision for India, which aligns with the country’s ambition to become a key player in the global supply chain. While HP is focused on boosting local value addition, it has not confirmed whether it will apply for the ₹23,000-crore component-focused PLI scheme.
On the business front, HP is witnessing strong growth in both commercial and consumer segments. Large enterprises, IT/ITeS firms, and India Inc. are driving demand in the commercial space, while small and medium-sized businesses (MSMEs), especially in non-metro areas, are contributing increasingly to HP's sales volumes. To cater to MSMEs, HP has introduced "HP Connects"—customer engagement centers that offer both IT infrastructure and consulting services, effectively acting as outsourced CIOs for businesses without in-house tech teams.
In the consumer segment, key growth areas include gaming, content creation, and education. HP's gaming PCs are performing well, with freelancers and online educators opting for high-performance laptops instead of mobile devices. In India, technology investments often focus on income generation or education, according to Dasgupta.
India is increasingly becoming a major hub for IT hardware manufacturing as global laptop makers shift production away from China to Indian partners. This shift has been accelerated by the success of the ₹17,000-crore PLI scheme for IT hardware, which is gaining momentum after a slow start. The ongoing trade tensions between the United States and China, particularly concerns about potential new US tariffs on Chinese IT hardware, have prompted many companies to accelerate production agreements with Indian manufacturers.
Indian electronics manufacturers are taking advantage of this shift by expanding their capabilities and leveraging the dual benefits of lower import duties and PLI incentives. These advantages make India an attractive manufacturing base and allow local manufacturers to qualify for government procurement tenders, which require a significant percentage of local content in IT hardware.
Despite this progress, India’s domestic production of IT hardware still meets only a small fraction of total demand. In FY24, laptop imports were valued at around $11 billion, while local production accounted for approximately $1 billion, or about 10-20% of the total demand.
