Speed up ‘Make in India’ Plans: Govt Tells Laptop Manufacturers in 2023
Major electronic companies, including Dell, HP, Samsung, and Apple, met with Rajeev Chandrasekhar, the minister of state for electronics and IT, and staff members from the IT ministry on Tuesday.
According to those with direct knowledge of the situation, importers of laptops, personal computers (PCs), and related goods have been instructed to move forward with their plans to manufacture in India after the Directorate General of Foreign Trade (DGFT) delayed the implementation of import curbs on these products until November 1.
Major electronic companies, including Dell, HP, Samsung, and Apple, met with Rajeev Chandrasekhar, the minister of state for electronics and IT, and staff members from the IT ministry on Tuesday.
Some businesses requested an extension of more than three months to finish licencing formalities and establish production facilities in India. Others asked the government not to set import quotas once the businesses had permits.
They also wanted to know if the licences were valid and if various subsidiaries could use them.” The administration acknowledged that the notification shouldn’t have gone into force immediately.
A representative of one of the laptop businesses stated, “We begged the government to extend the deadline further so that we can meet demand through imports till we locate supply chain partners and begin manufacturing in India.
The spokesman also stated that the businesses wanted no hindrances throughout the holiday season.
According to informed sources, the administration assured businesses that India has a stable political system and that the goal of the most recent decision was only to boost manufacturing in the nation. According to a government representative, “We have addressed all the companies’ concerns and asked them to apply under the revised IT hardware scheme and start their manufacturing in India as soon as possible.”
According to the source, these restrictions will also provide the government with details regarding the types of imports being made and the regions from where they are coming. This information is crucial from a security perspective.
To enhance domestic production without forbidding imports, the official added, “We have also sought alternatives from the industry.”
Last week, the government put immediate limitations on importing laptops, tablets, and PCs and informed businesses that they would only be permitted to import such goods with a valid licence.
Companies like Dell, HP, and Apple were dissatisfied since they had yet to strengthen their production bases in India, even though it was perceived to speed up local manufacturing of such items and encourage businesses to apply under the IT Hardware PLI 2.0.
Following advice from the business community, imports were permitted without limitations until October 31. After that, a valid licence would be required.
Regarding the industry’s request to extend the notification deadline, the government official stated that there is currently no strategy in place and that it would be reviewed closer to the deadline of November 1. The permits granted to these businesses will also be valid for a year, after which they must reapply. According to the official, a single company firm can obtain several licences through subsidiaries, and once the applications are received, the charges will be authorized in 5–10 minutes.
Only two electronic businesses, including HP, out of the 44 registered online for the Rs 17,000 crore IT Hardware PLI, have requested incentives under the programme, according to government sources.
In 2023, the Indian government sent a clear message to laptop manufacturers: Speed up their ‘Make in India’ plans. This directive marks a significant push towards indigenous manufacturing, enhancing the nation’s global position in electronics production.
Launched in September 2014, the ‘Make in India’ initiative aimed to promote the country as a global manufacturing hub. The campaign focuses on 25 sectors of the economy, including automobiles, aviation, and IT & BPM. One of the primary objectives is to increase the manufacturing sector’s contribution to India’s GDP to 25% by 2022, up from the previous 16%.
The global demand for laptops skyrocketed in the last couple of years, given the paradigm shift towards remote working and online education. With its vast consumer base, India saw a significant increase in demand for electronic devices, especially laptops.
However, despite the huge market, most of the laptops sold in India have been imported. Recognizing this mismatch and the potential for economic growth, the government in 2023 urged laptop manufacturers to accelerate their local manufacturing plans.
The move to encourage local laptop production comes with a host of benefits:
- Reduced Import Duties: Manufacturing in India could lead to reduced import duties for components, leading to cost savings.
- Government Incentives: The government will likely offer various incentives to companies setting up manufacturing units, including tax breaks and subsidies.
- Labour Advantage: India boasts a young and skilled workforce that could provide a competitive edge to manufacturers.
- Localized Supply Chain: Local production can lead to a robust localized supply chain, reducing lead times and dependency on international suppliers.
India’s infrastructural facilities need significant upgrades to match global manufacturing standards.
While India has a massive labour force, specialized training might be essential for manufacturing precision electronics like laptops.
A thriving manufacturing ecosystem requires the availability of local component manufacturers. At present, many of these components are imported.
To counter these challenges and make the transition smoother for companies, These clusters provide a tailored infrastructure for electronics manufacturing units, ensuring they have all the necessary facilities.
Provides capital subsidy to boost large-scale manufacturing. To ensure a trained workforce, several initiatives like the ‘Skill India’ campaign have been enhanced to cater to electronics manufacturing.
India’s appeal as a manufacturing hub is not just about cost benefits; it’s also about accessing one of the world’s largest consumer markets. As laptop manufacturers mull over the government’s directive, they will analyze the long-term advantages of setting up production bases in India.
2023 could be the tipping point for India’s journey towards becoming a global laptop manufacturing powerhouse. The government’s push, combined with the inherent advantages the country offers, could usher in a new era for the Indian electronics manufacturing sector.
