HP, Dell and Lenovo are among the 27 firms granted permission to manufacture tech in India under the incentive scheme.

Workers inspect smartphone components in the visual inspection area of ​​the Realme factory in Greater Noida, India, Wednesday, June 1, 2022. A market where many have stumbled. Photographer: Anindito Mukerjee/Bloomberg via Getty Images

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American technology giants Dell, HP and China Lenovo are among the 27 companies that have received permission to manufacture IT hardware in India Production Linked Incentive SchemeAs the country aims to boost domestic production and attract large investments in the value chain.

in PLI Scheme 2.0 for IT Hardwarewhich the government approved in May India will give incentives to companies For goods produced in the country.

“IT equipment of well-known brands such as Acer, Asus, Dell, HP, Lenovo, etc. statement on Saturday.

The scheme has a budget 170 billion Indian rupees (about 2 billion dollars) spread over six years and includes the production of laptops, tablets, personal computers, microcomputers and servers.

“Out of 27 approved applicants, 23 are ready to start production on day one,” Railways, Communications and Electronics and IT Minister Ashwini Vaishnau told industry leaders and the media.

The companies are expected to collectively invest $360 million and create 200,000 jobs, including 50,000 direct employment opportunities and 150,000 indirect employment opportunities. The Indian IT hardware market is Growth is expected to $22.77 billion in 2027 from $15.52 billion in 2022.

“The IT hardware manufacturing sector faces a lack of level playing field vis-à-vis competing countries…a mechanism is needed to compensate for manufacturing constraints vis-à-vis other major manufacturing economies,” it said. Ministry.

“PLI Scheme 2.0 for IT Hardware is expected to lead to expansion and deepening of the manufacturing ecosystem by encouraging localization of components and sub-assemblies and longer duration of in-country supply chain development. the ministry said.

IT hardware manufacturers like Apple supplier Foxconn And South Korea's Samsung has increasingly diversified its manufacturing bases outside of China, attracted by a boost in electronics manufacturing, just as India is the world's second-largest smartphone market.