Making PCs in India needs govt support: Lenovo MD
Chinese PC-maker
seeks incentives for
local manufacturing
VARUN AGGARWAL
Mumbai, May 18
At a time when the Centre is talk-
ing about ‘Make in India’ and
promoting electronics manufac-
turing in the country, Chinese
PC-maker Lenovo is finding it
tough to make computers at its
local unit here due to lack of in-
centives.
One of the largest PC manufac-
turers, Lenovo told BusinessLine
that the facilities they put up for
manufacturing PCs in India,
years ago, are largely sitting idle,
as there is no support from the
government to enable PC manu-
facturing in India.
“Today, component ecosystem
is not there for PC manufactur-
ing in India. Manufacturing PCs
in India (as of today) means just
assembling and PC assembling
is not a high-end process. We are as that requires setting up addi- By creating a tax difference growing demand in the country. phone shipment growth. Ac-
asking government to incentiv- tional manufacturing lines and between importing versus man- But the lack of component eco- cording to an initiative by the
ise local manufacturing. They overheads, which is an overhead ufacturing locally at about 6-8 system in the country, which Central government in 2013, loc-
don’t say no but they’ve that no manufacturer is per cent, the government has could not develop for the lack of ally manufactured PCs were to
not said yes either,” willing to take. been able to ensure that all mo- support from the government, get preference in government
Rahul Agarwal, bile phone brands, including most of these manufacturing tenders through Preferential
Managing Director Tax difference Apple, have set up local manufac- units have turned into little Market Access policy. But five
at Lenovo India, Compare that turing here. Almost none of more than box movers. years since, the scheme has been
told Business- to local mobile them had any manufacturing “The government is more ex- a non-starter.
Line. phone manu- units in India prior to change in cited by smartphones. But PC in- The government-buying con-
Taxes on PCs facturing, government policy two years dustry last year grew faster than tributes to about 11-12 per cent of
in India are which was al- ago. smartphone industry. Maybe overall PC sales in the country.
structured in a most non-ex- However, Lenovo, Dell, Acer they will take note of this,” Agar- With just the PMA scheme imple-
way that im- istent about and HP set up manufacturing wal said. “We are talking to the mented, it would’ve given
porting PCs and two years ago units in India over a decade ago, government through MAIT. In enough impetus to manufactur-
manufacturing in the country. eyeing at catching on to the the long-term, PC will only grow ers to look at local manufactur-
them locally at- because once people get a taste ing of PCs.
tract the same duties. of internet through smart- “Right now they are not clear
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Y
That leaves manufac- “The government is more excited by phone, they’ll see the benefit of a what to do. To incentivise people
turers with no in- smartphones. But PC industry last larger device for education of to manufacture PCs in India, the
centives to manu- year grew faster than children.” government will have to forego
facture smartphone industry.
some revenues initially. On
locally Maybe they will take
Growing PC sales phones, if you manufacture in
While PC sales have been on a de- India, it is about 7-8 per cent
note of this.”
cline globally, sales are still on cheaper. But to manufacture PCs
RAHUL AGARWAL the rise in India. Last year, PC in India, it costs the same. So, for
Managing Director,
Lenovo India shipments in the country grew us, local manufacturing is not a
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Y at 19 per cent, surpassing smart- focus for now,” Agarwal said.