HP To Expand Manufacturing In India As Trade Agreement With US Progresses

(MENAFN- KNN India) New Delhi, April 25 (KNN) HP Inc. has announced plans to significantly expand its manufacturing presence in India, as the country moves closer to finalizing a bilateral trade agreement with the United States.

HP aims to scale up production of desktops and laptops for the Indian market, according to statements made on Thursday.

The company doubled its manufacturing output in India last year, spurred by the government's Production-Linked Incentive (PLI) scheme for IT hardware, valued at approximately Rs 17,000 crore.

Ipsita Dasgupta, Managing Director, HP India, confirmed the company's commitment to further expanding local production capacity in an interview with The Times of India.

"We are growing and are manufacturing through PLI with Dixon. So, we are growing our manufacturing in India. And every year over the next few years, you will see a proportional rise in the percentage of manufacturing here," Dasgupta stated.

HP, which currently leads the computer market in India, has been expanding its presence in smaller markets with new retail formats such as 'HP Connect,' targeting Micro, Small and Medium Enterprise (MSME) clusters and household consumers in Tier 2 and Tier 3 towns.

Dasgupta emphasized that production is being accelerated rapidly as the manufacturing ecosystem in India continues to develop.

"Within our first year, we will double our manufacturing percentage in India. We're making all-in-ones, desktops, and laptops," she noted.

When questioned about the advantages of manufacturing in India, Dasgupta acknowledged that the PLI incentives serve as a significant catalyst.

However, she highlighted a broader strategic perspective: "But more importantly, I think it's exciting to be part of India's desire to be a significant part of the global value chain.

We have a large consumer base in India. So, as you make more in India, you also learn more about making in India. And that's not something that we would want to be left out of."

Dasgupta expressed optimism regarding the future benefits of local manufacturing as the supplier ecosystem in India matures and becomes more cost-effective.

"You know, there's still maths to be done on that, but it will get more cost-friendly. It's getting there. And I actually think in the next two-three years, this will be something that the Indian ecosystem has surmounted," she concluded.

(KNN Bureau)

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