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India will provide subsidies to 27 tech companies, including Dell (NYSE:DELL), HP (NYSE:HPQ), Lenovo (OTCPK:LNVGY), Foxconn (OTCPK:FXCOF), Asus (OTCPK:ASUUY) and Acer (OTC:ACEYY), under a production-linked incentive scheme for IT hardware aimed at boosting domestic manufacturing.
These 27 companies are expected to invest ~$359.9M, according to a government statement, with the value of IT hardware production estimated at $42B.
India’s minister for electronics and IT Ashwini Vaishnaw said 23 companies are ready to start manufacturing from day-zero.
The move is part of Prime Minister Narendra Modi’s push to make India a global hi-tech manufacturing hub. The PLI scheme covers laptops, tablets, all-in-one PCs, servers and ultra small form factor devices.
These subsidies come at a time of heightened scrutiny of Chinese companies in India, on account of geopolitical tensions between China and India.
Four executives of Chinese smartphone maker Vivo were arrested last month for alleged visa violations and tax evasion. Indian authorities had also raided Vivo’s offices on suspicion of money laundering, with peers Xiaomi and Huawei Technologies also facing similar actions.
