As India moves toward finalizing its bilateral trade agreement with the US, American tech giant HP is ramping up its manufacturing operations in the country. HP has announced plans to increase the production of desktops and laptops, leveraging the Rs 17,000-crore Production-Linked Incentive (PLI) scheme aimed at boosting IT hardware manufacturing in India.
HP India’s Managing Director, Ipsita Dasgupta, revealed that the company plans to double its manufacturing output in India this year compared to the previous one. “We are growing our manufacturing through PLI with Dixon, and you’ll see a proportional rise in the percentage of manufacturing here over the next few years,” Dasgupta stated.
The company, which already leads the Indian computer market, is also expanding its retail presence in smaller cities through new formats like ‘HP Connect,’ designed to target MSMEs and household consumers in Tier 2 and Tier 3 towns.
Dasgupta highlighted that the ramp-up in production is accelerating, especially as India’s manufacturing ecosystem strengthens. She emphasized the significance of PLI incentives and expressed excitement about India’s ambition to become a major player in the global value chain. “As we manufacture more in India, we not only learn more but contribute to India’s growing presence in the global market,” she added. HP was one of the first companies to embrace the PLI initiative for manufacturing in India.
The Indian government has enhanced benefits under the PLI scheme for IT hardware, aiming to shift computer and laptop manufacturing from China and Vietnam to India. These products are eligible for zero-duty imports under the World Trade Organisation’s Information Technology Agreement (ITA-1).
As the local manufacturing ecosystem develops, HP expects further cost benefits in the coming years. “In the next 2-3 years, the Indian ecosystem will overcome current challenges, making manufacturing more cost-friendly and sustainable,” Dasgupta concluded.
