Incentives, value addition boost made-in-India laptops

New Delhi: For the first time, nearly a third of all laptops being sold in India are being shipped with the ‘Made in India’ tag. This rise, which has played out over the past two years, has happened as government incentives have pushed electronics manufacturers to focus on the segment and diversify from mobile-led revenue.In March 2024, less than 5% of all laptops being sold in India were being assembled locally, analysts and industry executives said.

As the Union government’s production-linked incentive scheme began rolling out benefits, electronics manufacturing services (EMS) firms have increased their bets on local laptop manufacturing.“We already have a strong pipeline for our laptop assembly deals, and we have already struck deals with leading brands to locally make their laptops,” said Jasbir Singh Gujral, managing director of Mumbai-based EMS firm, Syrma SGS. “Overall, we expect that for global brands, nearly a third is being catered out of assembly lines in India, and the government-backed incentives play a major role in it.”The government, in March 2023, rolled out a 5% incentive on incremental revenue from locally assembled laptops, as part of a ₹17,000-crore outlay over six years.Now, more companies have started reaping the benefits.“Laptops, tablets and IT hardware products: The segment saw a healthy uptick in revenues in the quarter, and we have a very strong order book for the next financial year and capacity enhancements going on,” Atul Lall, managing director of Dixon Technologies, told analysts in the company’s post-earnings analyst call on 29 January.“Our dedicated IT hardware product manufacturing unit in Chennai has successfully stabilized MICE production of laptops and AIOs for HPs and Asus.