HP's Strategic Expansion in India

As India and the US edge closer to finalizing a bilateral trade agreement, HP, the American computer giant, announced its plans to significantly increase its manufacturing operations in India. This move is aimed at boosting the production of desktops and laptops within the country.

Boosting Production Through PLI Scheme

Last year, HP doubled its manufacturing output in India, thanks to the Rs 17,000-crore production-linked incentive (PLI) scheme for IT hardware. Ipsita Dasgupta, HP's India MD, revealed that the company plans to further expand its local production footprint. "We are growing our manufacturing in India every year, and you will see a proportional rise in the percentage of manufacturing here," Dasgupta stated.

Targeting New Markets

Leading the computer market in India, HP is now focusing on penetrating deeper into Tier 2 and Tier 3 towns with new retail formats like 'HP Connect'. This initiative targets MSME clusters and household consumers, showcasing HP's commitment to making technology accessible across all segments of the Indian market.

The Future of Manufacturing in India

Dasgupta emphasized the rapid ramp-up of production, supported by a growing manufacturing ecosystem. "Within our first year, we will double our manufacturing percentage in India," she said, highlighting the production of all-in-ones, desktops, and laptops. The PLI incentives are seen as a significant enabler, but more importantly, HP is excited to be part of India's ambition to become a key player in the global value chain.

As the supplier ecosystem develops and becomes more cost-effective, HP anticipates even greater benefits from local manufacturing. "In the next two-three years, this will be something that the Indian ecosystem has surmounted," Dasgupta optimistically noted.