With the support of global manufacturers and initiatives like the PLI scheme, India aims to establish itself as a hub for laptop manufacturing.
The Indian government has decided against imposing a ban on laptop imports, opting instead to focus on promoting domestic manufacturing through initiatives like the Production Linked Incentive (PLI) scheme. This approach is in line with the government’s strategy to encourage local production without restricting imports immediately.
Read More: HCLTech rolls out salary hikes: Employees getting and those ‘not getting’ increments
Shift From Import Ban To Domestic Manufacturing
Initially, the government announced a ban on laptop imports on August 3, 2023, which was to take effect from October 1, 2023. However, the move faced resistance from manufacturers such as HP and Dell, leading the government to reconsider its decision. Officials now believe that as domestic production scales up, the dependency on imported laptops will automatically decline, following a similar trend seen in the smartphone industry.
Read More: India Becomes Second Largest Buyer Of Gold After Poland In 2024: World Gold Council
Growth In Domestic Production
According to a Navbharat Times report, government officials stated that companies like HP and Dell are set to ramp up local manufacturing in the coming financial year. Additionally, efforts to establish a robust ecosystem for component manufacturing within the country are underway.
The government is also focusing on attracting investments in the semiconductor sector to support the production of laptops and other electronics. However, India’s $10 billion budget for the semiconductor sector is relatively small compared to the investments made by countries like Japan, the U.S., Europe, and China.
Read More: Petrol, Diesel Fresh Prices Announced: Check Rates In Your City On January 7
Benefits of the PLI Scheme
The PLI scheme, introduced in 2023, is expected to play a crucial role in accelerating laptop manufacturing in India. HP and Dell have committed to increasing production under this initiative, with investments totaling ₹17,000 crore. Domestic manufacturing is expected to commence in the upcoming financial year.
Context Of Laptop Import Ban
The government initially announced a ban on laptop imports to encourage local production. However, the backlash from manufacturers prompted a re-evaluation. Companies that were initially reluctant to set up manufacturing facilities in India, such as HP and Dell, have now committed to doing so following the government’s decision to step back from the ban.
The government’s strategy shows its approach to the smartphone sector, where domestic production was boosted without imposing an outright import ban.
