Acer and Asustek, two global giants in the PC manufacturing industry, are gearing up to increase their production activities in India as the country considers tightening import restrictions to bolster its local tech sector.
This move aligns with PM Modi’s ‘Make In India’ flagship program and India’s broader initiative to promote domestic manufacturing and reduce dependence on imports, particularly in the wake of global supply chain disruptions.
Two of the world's biggest PC makers plan to step up manufacturing in India this year as the country weighs tightening import restrictions to boost the local tech industry.#MakeInIndiahttps://t.co/vHSY4QC69T
— Lakshmisha K S (@lakshmishaks) February 8, 2024
Acer and Asustek’s Commitment to Local Production in India
Acer and Asustek have expressed their long-term commitment to local production in India. Acer Chairman Jason Chen highlighted India’s rapid growth as the company’s second-largest market in terms of shipments and revenue, following the United States. Acer intends to accelerate its sales of consumer notebook computers in India this year and is in discussions with its Indian manufacturing supplier and other Taiwanese suppliers to ramp up local production.
Similarly, Asustek Computer Co-CEO Samson Hu emphasized the company’s proactive approach in response to the Indian government’s push for more domestic manufacturing. Asustek has been strengthening its consumer notebook brand in India over the past two years and plans to prioritize the Indian market for expanding its commercial notebook business starting this year.
India’s Policy Shifts and the “Make In India” Initiative
Recent policy shifts have underscored India’s efforts to bolster its tech supply chain through local manufacturing. Last August, the government introduced regulations that initially required licenses for importing various tech products, including notebooks and tablets, as part of the “Make In India” initiative. While these measures aimed to promote local manufacturing, they also led to adjustments in import management systems.
Potential Impact on the Indian Tech Market
The expansion of PC manufacturing by Acer and Asustek in India is expected to impact the country’s tech market significantly. With the potential for increased local production, India could see a boost in job creation, technology infrastructure development, and overall economic growth within the tech sector.
Counterpoint Research Forecasts Growth in Indian PC Shipments
Counterpoint Research anticipates a positive trajectory for the Indian PC market, forecasting a 9.3% year-on-year shipment increase for 2024. This growth outlook exceeds the projected global PC shipment increase of 5%, indicating India’s growing importance as a key market for PC manufacturers amidst evolving industry dynamics.
As Acer and Asustek double down on their manufacturing efforts in India, the country’s tech industry benefits from enhanced local production capabilities and increased market competitiveness. This strategic alignment with India’s “Make In India” initiative reflects a broader trend towards localization and self-reliance in global supply chains, positioning India as a significant player in the evolving landscape of PC manufacturing.