India is on track to achieve this in record time, with China’s efforts appearing to pale in comparison. Money is flowing like never before, and even Xi Jinping’s administration cannot claim to have experienced such a massive exodus of investment and business as India is currently witnessing. The country has opened its arms to anyone wishing to establish themselves on its soil, offering a total of $2 billion in incentives for companies. Consequently, 27 PC manufacturers have eagerly agreed to partner with India and begin production at an unprecedented pace.
The PLI 2.0 plan is working in India, attracting more and more businesses and manufacturers requiring skilled labor. Already, an estimated 200,000 jobs are expected to be created. So how has India managed to achieve this feat?
A speedy surge for India: 27 PC and laptop manufacturers set to build their logistics and manufacturing centers from the ground up
According to Shri Ashwini Vaishnaw, Minister of Railways, Communications, Electronics and IT, in an official statement this week, the government has approved the inclusion of 27 IT and hardware manufacturers in the PLI 2.0 plan:
Building on the success of the Production Linked Incentive (PLI) scheme for mobile phones, the Union Cabinet, led by Prime Minister Shri Narendra Modi, approved the PLI 2.0 plan for IT hardware on May 17, 2023. This plan covers laptops, tablets, all kinds of devices such as PCs, servers, and ultra-small form factor all-in-one (AIO) devices.
Today, the applications of 27 IT hardware manufacturers have been approved. IT hardware from well-known brands like Acer, ASUS, Dell, HP, and Lenovo, etc., will be produced in India. The expected outcomes of this approval, during the plan’s duration, are as follows:
Employment: A total of approximately 200,000 jobs (50,000 direct and 150,000 indirect jobs)
IT Hardware Production Value: ₹3.5 lakh crore ($42 billion)
Company Investment: ₹3,000 crore ($360 million)
Addressing industry leaders and media, Railways, Communications, Electronics, and IT Minister Shri Ashwini Vaishnaw, reported that “23 of the 27 approved applicants are ready to start manufacturing on day zero.”
Up to $2 billion of investment over six years to assist companies
The initial investment by these 27 manufacturers will be, as per the statement, $360 million, which is only a fraction of what they will collectively receive. Thus, India will witness a surge in investment, with new logistics centers, laboratories, and manufacturing facilities emerging from the ground up over the six years of assistance aimed at boosting the country’s progress.
Naturally, the first facilities to be established will be production factories, as the West needs affordable labor. As seen in recent months, several laws have been amended to allow for 24-hour rotating shifts. Productivity must match China’s as soon as possible at a lower hourly cost.
Interestingly, some companies have not joined the plan, such as Apple and Samsung, which are giants with their own plans, rules, and even the ability to influence the country’s laws with their power.
India has already become the second-largest manufacturer of popular devices such as smartphones, trailing only China. All of this is part of the country’s long-term strategy known as Make in India. Undoubtedly, the West has stepped on the gas and will overtake China one way or another, either through production with a third partner or via a technological blockade as seen in recent years.
The arrival of 27 PC manufacturers in India to create $42 billion worth of hardware within the country marks a significant milestone in the tech industry.