New Delhi: As the IT hardware industry faces a recession in Europe and the US, India is poised to become a key driver of growth for products like laptops, computers, and servers. Rajeev Chandrasekhar, the Minister of State for IT and Electronics, predicts that the Indian market will expand over 2.5 times in the next three years, surpassing $25 billion in size. In one of the interviews, Chandrasekhar explains that initiatives like the Production Linked Incentive (PLI) scheme for IT hardware and strong demand will attract major global companies to consider manufacturing investments in India.
Here are the key excerpts from the interview: Chandrasekhar acknowledges that the IT hardware industry is currently experiencing a global slowdown. However, he emphasizes that India will outperform this trend and emerge as one of the fastest-growing markets for IT hardware, including tablets, servers, and laptops. He points out that India is still in the early stages of cloud adoption, and as more data centers are established, the demand for servers will increase.
Additionally, sectors such as education and healthcare are beginning to embrace digitalization, leading to higher demand for laptops and tablets in these areas. Chandrasekhar also highlights the potential demand from the enterprise sector and the government.
When asked about growth projections, Chandrasekhar expects the IT hardware market to reach approximately $10 billion in the last fiscal year. Going forward, he forecasts a growth rate of 17-18% due to the acceleration of digitalization in government, education, healthcare, and enterprise sectors, as well as the expansion of cloud services. He believes that by the fiscal year 2025-26, the market will reach around $25 billion.
Regarding incentives for companies manufacturing in India, Chandrasekhar assures that the government will strive to facilitate market access for those who choose to produce within the country. The government’s policies aim to support the success of Indian manufacturers and enhance their opportunities to secure public and private contracts.
Chandrasekhar highlights the unique aspect of the new PLI scheme for IT hardware, stating that it incentivizes system design and innovation. This means that companies will receive incentives for incorporating domestically designed systems, semiconductors, and manufactured chips. By encouraging domestic design and production, the government aims to provide even higher incentives to eligible companies.
In summary, India is expected to drive the growth of the IT hardware industry, despite the global recession. Factors such as the PLI scheme and increasing demand in sectors like education, healthcare, enterprise, and government are likely to attract major global companies to invest in manufacturing within India. The government’s focus on supporting domestic manufacturers and incentivizing system design and innovation further strengthens the prospects for the Indian IT hardware market.