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Date: 22-apr-2025
As global tech companies reassess supply chain strategies, a major shift is underway: laptop production is moving from China to India. Leading brands like HP, Asus, MSI, and Lenovo are now expanding their footprint in India, encouraged by favorable policy frameworks, lower geopolitical risk, and strong local demand.
The turning point? India’s revised Production-Linked Incentive (PLI) scheme for IT hardware, coupled with growing unease over future U.S. tariffs on Chinese imports. Together, these factors are catalyzing a regional production pivot that could reshape global electronics manufacturing.
Launched with a ₹17,000 crore incentive pool, the PLI scheme is designed to reward manufacturers for producing laptops, tablets, servers, and related hardware within India. Under this program, companies are offered cash incentives based on their output and value addition done locally.
This policy shift is already yielding results:
While China remains a dominant player in tech manufacturing, rising labor costs, pandemic-era disruptions, and the threat of escalating U.S. tariffs have pushed brands to diversify their manufacturing footprint.
India presents a compelling alternative due to:
For global laptop makers, producing in India means better margins, access to incentives, and insulation from unpredictable trade dynamics. For India, the shift marks a milestone in its ambition to become a global tech manufacturing hub — generating jobs, boosting exports, and reducing import dependency.
According to the India Electronics and Semiconductor Association (IESA), India's electronics manufacturing sector could grow to over $300 billion by 2026 — with IT hardware playing a key role.
Analysts expect the trend to continue, with more OEMs (Original Equipment Manufacturers) looking to build or expand operations in cities like Chennai, Noida, and Bengaluru. The Indian government is also exploring additional incentive schemes to attract semiconductor and battery production — further solidifying India’s position as a viable alternative to China in the global tech supply chain.
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