A Major Boost to India’s Make-In-India Initiative
Asus, one of the world’s leading laptop manufacturers, has announced plans to relocate key component suppliers from its primary manufacturing hub in China to India. This move is a major boost to the Indian government’s Make-In-India initiative, which aims to attract foreign investment and promote manufacturing in the country.
Asus is partnering with contract manufacturer Flex to establish a new factory in Chennai, capitalizing on the government’s Production-Linked Incentive (PLI) scheme for IT hardware. The PLI scheme provides financial incentives to companies that manufacture certain products in India.
Asus aims to aggressively expand its production operations in India, relying on the government’s PLI scheme. This move comes as the company anticipates rapid growth in demand within the Indian market, even as China, the United States, and major Western markets face economic slowdowns.
Why Asus is Shifting to India
There are several reasons why Asus is shifting its primary supplier from China to India. First, India is a large and growing market for laptops. IDC’s report predicts a 15% CAGR growth for the Indian laptop market in the next five years.
Second, the Indian government is offering attractive incentives to companies that manufacture laptops in the country. The PLI scheme, especially, will enhance laptop production in India.
Third, India has a large and skilled workforce. Asus can tap into this workforce to build high-quality laptops at a competitive cost.
Benefits of Asus’ Shift to India
Asus’ shift to India will benefit the Indian economy in a number of ways. First, it will create jobs in the manufacturing sector. Second, it will boost exports and reduce imports. Third, it will help India to develop its own supply chain for laptop components.
In addition, Asus’ shift to India will help to reduce the country’s dependence on China for laptop imports. This is important given the recent tensions between India and China.
Conclusion
Asus’ decision to shift its primary supplier from China to India is a major win for the Indian government and its Make-In-India initiative. This move will benefit the Indian economy in a number of ways, including by creating jobs, boosting exports, and reducing imports.
In addition, Asus’ shift to India will help to reduce the country’s dependence on China for laptop imports. This is important given the recent tensions between India and China.