India Look Set to Seize Laptop Manufacturing Opportunity

India is set to set the world of laptop manufacturing alight with the new PLI Scheme for consumer electronics. This comes after huge progress in smartphone manufacturing in the past few years.

PLI Scheme for Tablets, All in One PCs, Servers and Laptop Manufacturing

The Union cabinet approved a PLI scheme for laptops, tablets, all-in-one-personal computers, and servers in February worth Rs 7,325 crores. The PLI scheme followed the same scheme for telecom equipment manufacturers. This will provide a major boost to the manufacturing sector. Moreover, the PLI scheme will also position India as a major hardware exports hub. Furthermore, this will place India at a much leveler playing field with China, who currently is the world's largest exporter.

The PLI Scheme for tablet and laptop manufacturing is more important. It can help reduce imports and dependence on China for these devices. During the COVID-19 related restriction, laptop and tablet usage has skyrocketed. The rise in online learning has also increased their usage and utility among students.

2020 finished as the biggest year for notebooks with 7.9 million shipments, as per a report from International Data Corporation. Furthermore, notebook shipments grew by 6% in 2020. Similarly, the tablet market recorded 14.7% YoY growth with 2.8 million units shipped in 2020.

EY and ICEA reported jointly that boosting export-oriented tablet and laptop manufacturing can open a $100 billion opportunity for India by 2026.

Projecting India to the Global Landscape

Presently, China is the global manufacturing hub with 66% market share in 2019. China has a market share worth $100 billion. India can take over from China by 2025 as PLI scheme kick-starts and propels the manufacturing in the country.

What's more, this PLI Scheme will generate 5 lakh additional jobs, attracting an investment upwards of $1 billion. By 2025, laptop manufacturing will bring in around $75 billion in foreign exchange reserves. However, policy interventions need to be just right. That would help reduce the dependence on Chinese imports and reduce trade deficit with the country.

There are many consumer electronics manufacturers with great presence in India. These include Foxconn, Flextronics, Jabil and Wistron. What's more, global brands such as Samsung, Apple and HP are also looking to expand within the country. With local companies also expanding their capacities, incentivising these looks more and more like a logical step. Not only that, ICEA-EY report said that this move will also present a significant geopolitical opportunity for India to seize a sizable share of the global market.