Google’s Investment in Indian Electronics Manufacturing
Chromebook Manufacturing: Indian Prime Minister Narendra Modi and Alphabet’s CEO, Sundar Pichai, discussed Google’s plans to establish an electronics manufacturing ecosystem in India.
The production of Chromebook laptops in India is a significant milestone for the country’s electronics manufacturing ambitions. Google’s partnership with HP to manufacture Chromebooks demonstrates India’s appeal as a destination for global companies diversifying their supply chains.
Chromebooks and their Potential in India
Chromebooks, laptops running on Google’s Chrome operating system, are now being manufactured at the Flex facility near Chennai. This move aims to cater to India’s growing demand, primarily in the education sector, for affordable personal computers.
The production of Chromebooks in India positions Google to compete more effectively with Windows-based computers manufactured by companies such as Dell, Lenovo, and Asus.
Check Out: Poco Pods: Affordable TWS with Bass-Packed PerformanceIndia’s Quest for Local Electronics Manufacturing
India aspires to establish itself as a trusted partner in global supply chains. This is especially true as US companies seek alternatives to China for their manufacturing needs.
The increase in imports of electronic goods, including laptops and computers. It is a cause for concern for India. China currently dominates the electronics import market. 70-80% of India’s personal computers and laptop imports originate from China.
The Production-Linked Incentive Scheme
The government’s Production-Linked Incentive (PLI) scheme attracted applications from over 40 companies. It includes Dell, HP, Asus, Acer, and Lenovo, to manufacture laptops, computers, and servers in India. Notably, Apple opted not to apply for the program.
Policy Changes to Reduce Import Dependence
India has implemented policy changes to discourage imports from China. The “import management system” requires companies to register and disclose import-related data. The government is planning to compel companies to source from “trusted sources” to reduce dependence on Chinese imports.
Check Out: India's Bid to Host 2036 Olympics Confirmed by PM ModiIndia is moving towards a formula-driven quota system, using a credit-based approach to align domestic production with imports.
