HP to Ramp Up Local Manufacturing in India, Eyes Doubling Production The company is one of 27 beneficiaries under the INR 17,000-crore IT Hardware Production Linked Incentive (PLI) scheme rolled out in 2023
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HP India is set to begin large-scale local manufacturing of its laptops, desktops, and all-in-one systems in May, through a partnership with Dixon Technologies. The company plans to nearly double its production capacity compared to last year, marking a significant move aligned with the Indian government's push for electronics self-reliance, as reported by Moneycontrol.
"This target is almost double the capacity of what we did last year without PLI," said Ipsita Dasgupta, HP's senior vice president and managing director for the India market. The company is one of 27 beneficiaries under the INR 17,000-crore IT Hardware Production Linked Incentive (PLI) scheme rolled out in 2023.
The expansion signals HP's commitment to deepen its manufacturing footprint in India, despite concerns raised by the US government regarding India's import management system for electronics. Dasgupta brushed aside any apprehensions about policy hurdles, expressing optimism about continued collaboration with Indian authorities. "We are very excited to work with the government to drive value in the market… we're confident that the government will help ensure we can continue to scale our business," she said.
When asked whether HP's India investment forms part of a broader China+1 diversification strategy, Dasgupta emphasized continuity rather than reaction. "We have the same strategy for India that we had before the whole tariff situation — we want to partner with India on its goal to be part of the global value supply chain," she said, adding that the company would keep increasing its India-based production each year.
HP's future manufacturing plans also include a focus on increasing local value addition, though Dasgupta did not confirm whether the company would participate in the recently announced INR 23,000 crore component PLI scheme.
Demand trends are also encouraging for HP across both commercial and consumer segments. "We've seen really strong growth on the commercial side… and now we are seeing an uptake on the consumer side," she noted, pointing to the back-to-school season and upcoming festivals as demand drivers.
To tap into underserved markets, HP has launched "HP Connects" — customer centers located in MSME hubs, offering hardware access and IT advisory services. "These centers have almost become like CIO-as-a-service," Dasgupta said, catering to small businesses lacking dedicated tech teams.
On the consumer front, growth is being driven by gamers, freelance creators, and students. "We're still a country where Indian households spend to better the household situation, either through income generation or education," Dasgupta said.
