New Delhi [India], September 9 : HP Inc and Padget Electronics have signed an MoU for manufacturing HP laptops, personal computers, and all-in-ones at a factory in Tamil Nadu, announced Union Electronics and Information Technology Ashwini Vaishnaw on Monday.
"This is a major success for the PLI scheme under Prime Minister Narendra Modiji's Make in India program. As all of you are aware, in the last 10 years, the electronics manufacturing industry has grown by leaps and bounds and today it is more than 10 lakh crore rupees worth of industry. This industry, the electronics manufacturing industry is employing about 10 lakh people in the entire country and today it has emerged as a major exporting industry out of India," Vaishnaw said as he announced the partnership between the two companies.
The new plant to be set up by HP and Padget will initially employ about 1,500 persons and as production increases, the employment will also increase.
The first laptop out of this factory will be shipped in February 2025, the minister asserted.
Faced with supply chain disruptions, particularly since the COVID pandemic hit in 2020 and the subsequent flare-up of geopolitical tensions that still continue, many leading global companies, in particular those that are in the manufacturing space, are diversifying their operations across regions. These visible trends of business diversification are basically to reduce risk and increase flexibility.
For companies in such situations, it means exploring emerging global supply chain regions for diversification, and India, given its political stability and huge market opportunity with a dynamic workforce and a steady rise in income levels, is eyed as one of the best places to set up manufacturing bases.
India continued to remain the fastest-growing major economy and is poised to maintain its growth trajectory going ahead. India's economy grew 8.2 per cent in 2023-24, 7.2 per cent in 2022-23, and 8.7 per cent in 2021-22, respectively.
As part of its Atmanirbhar and Make in India plan, the government launched production incentive (PLI) schemes in varied sectors, including electronics, to make Indian manufacturers globally competitive, attract investments, enhance exports, integrate India into the global supply chain, and reduce dependency on imports.