HP India is poised to ramp up its local production efforts starting May 2025, with a focus on laptops, desktop PCs, and all-in-one systems. The company’s partnership with Dixon Technologies aims to nearly double production compared to the previous year. This initiative aligns with India’s vision to boost domestic manufacturing and enhance its position in the global supply chain. Despite potential challenges stemming from India’s new import policies, HP remains optimistic about its local operations, underlining its commitment to a China+1 strategy and increasing its manufacturing footprint in India.
HP India's Bold Move Toward Enhanced Local Production
In May 2025, HP India will begin local production of laptops, desktop PCs, and all-in-one systems, marking a significant step in the company’s commitment to strengthen its manufacturing footprint within the country. This initiative is the result of a strategic collaboration with Dixon Technologies, a partnership designed to nearly double the company’s manufacturing output compared to the previous year. The decision aligns with the Indian government's ambitions to make the nation a hub for high-tech manufacturing, especially under initiatives like the Production Linked Incentive (PLI) scheme for IT hardware, which was introduced in 2023.
Doubling Manufacturing Capacity Amid a Growing Market
Ipsita Dasgupta, Senior Vice-President and Managing Director of HP India, revealed that the company’s production target for this year is nearly twice the output achieved in the previous year, a remarkable feat given that the company achieved its past targets without the additional benefits from the PLI scheme. This ambitious increase in production aligns with HP's broader strategy to cater to the growing demand for computing devices in India and leverage the government’s incentives designed to boost domestic manufacturing.
As part of the PLI scheme, HP is one of the 27 companies approved under the ₹17,000-crore initiative aimed at making India a competitive player in the global IT hardware market. The scheme provides financial incentives for companies that manufacture products within India, reducing reliance on imports and bolstering domestic production capabilities. For HP, this presents an opportunity to increase its market share in India while benefiting from the government’s push to enhance local manufacturing in line with the "Make in India" initiative.
Navigating Trade Concerns: HP’s Confidence in Indian Operations
Despite recent concerns raised in a US trade report about India’s evolving import management system for electronic devices, HP India remains confident in its strategy and operations within the country. The new import management policy, which has generated some anxiety in the global business community, aims to streamline the country’s electronics imports but could present challenges to businesses accustomed to a more lenient trade environment.
In response to these concerns, Dasgupta emphasized HP’s long-standing commitment to India, noting that the company’s strategy predates the current global trade dynamics. She explained that HP's decision to increase its India-based production is part of a broader vision aligned with the country’s ambition to become a vital player in the global supply chain. As part of this vision, HP is determined to expand its local value addition year after year, enhancing both the manufacturing process and the domestic supply chain.
India’s Role in HP’s Global Supply Chain Strategy
HP's “China+1” strategy, which emphasizes diversifying its manufacturing base away from China, is central to the company’s evolving global strategy. While China remains a critical part of global supply chains, HP has increasingly sought alternatives in regions like India to mitigate geopolitical risks and trade disruptions. India’s role in this strategy is expected to grow, with the company keen on expanding its manufacturing footprint and contributing to India’s technological ecosystem.
Dasgupta acknowledged that India’s strategic position is key to HP's broader vision. The country’s ability to provide competitive manufacturing costs, skilled labor, and growing domestic demand for IT products makes it an attractive option for companies looking to diversify their production capabilities. HP is also working to increase the local content in its products, enhancing its value proposition and tapping into India’s vibrant tech ecosystem.
Future Outlook: Expansion and Investment Plans
Looking forward, HP’s plans to increase its India-based production appear to be solidified, though the company has yet to confirm whether it will apply under the newly announced ₹23,000-crore component-focused PLI scheme, which targets more specific segments of the IT hardware market. This scheme, aimed at providing incentives for companies to manufacture specific electronic components, could present another opportunity for HP to increase its local production and further integrate into India’s manufacturing sector.
HP’s India strategy also has the potential to create a ripple effect in the Indian economy, promoting job creation, enhancing technological expertise, and improving the overall manufacturing infrastructure. As the company continues to scale up its operations, it will likely contribute to the growth of the nation’s broader tech industry, positioning India as a key player in the global technology supply chain.
Conclusion: A Positive Shift in the Tech Landscape
HP India’s local production expansion, through its partnership with Dixon Technologies, is an exciting development for both the company and the Indian economy. With the support of the PLI scheme and a strong focus on increasing local value addition, HP is well-positioned to become a leading player in India’s growing tech manufacturing landscape. As the company navigates global trade challenges, its confidence in India’s role in the company’s future strategy underscores the country’s growing importance as a hub for high-tech manufacturing. For investors and stakeholders, HP’s shift towards enhanced local production could signal an optimistic outlook for the company in both the short and long term.
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