Google and HP collaborate to manufacture ChromeBook laptops in India
Google starts manufacturing ChromeBook laptops in India, joins hands with laptops.
What has just happened? Why in recent news?
Google has started producing its ChromeBook laptops in India through a partnership forged with HP in a major boost to the country's electronics manufacturing ambitions. The move puts Google among the most high profile names to kickstart manufacturing in India as companies across the world look to diversify their supply chains in the wake of turbulent geopolitical times. India recently closed the window to apply for its Rs.17000 crore Production Linked Incentive (PLI) scheme for IT hardware such as laptops, personal computers and servers and has initiated the process to check imports from China after a failed bid licence such gadgets.
Significance of Google decision?
The ChromeBooks laptops that run on Google Chrome Operating System will be manufactured at the flex facility near Chennai, where HP has been producing a range of laptops and desktops since Aug-2020. The production has started from Oct-2-2023 will cater to the demand for affordable PCs in India mainly from the education sector. ChormeBooks are among the most popular laptops used in educational institutions worldwide but are yet to find mainstream transaction in India, where laptops are running on the Windows Operating System. System continue to rule the roost. The move will help Google compete more effectively with Windows Computers from companies such as DELL, HP, LENOVO, ASUS. Manufacturing ChromeBook laptops in India will allow Indian students to geet easy access to affordable PCs. By further expanding our manufacturing operations we continue to support the Make in India initiative of the Government said Vikram Bedi Senior Director of Personal Systems at HP India.
Why its a big deal for India?
The development is inline with India's ambition to establish itself as a trusted partner in global supply chains. Especially at a time whenn companies especially fron America are looking to diversify from China - the traditional Hub of such manufacturing for decades while India has a big domestic demand for laptops and computers almost all of it is currently being fulfilled by imports from China. Something New Delhi wants to change as soon as possible. India has seen as increase in imports of electronic goods and laptops / computers in the last few years. During Apr - Jun this year, the import of electronic goods increased to USD$6.96 billion from USD$4.73 billion dollars in the year ago period with a share of 4% - 7% in overall imports. The highest share of imports. The highest share of imports is in the category of Personal Computers incuding laptops and Palmtops, under which imports from China stood at USD$558.36 million in Apr - May this year China accounts for roughly 70% - 80% of the share of India's imports of Personal Computers kaptops. The Government is expected to clear applications around 30 companies soon, a majority of whom will start production from next April it is understood.
Discourage imports fron China.
Even India has turned towards incentives to kickstart a manufacturing industry that has traditionally not existed n the country in a meaningful way, it has also adopted policy changes to discourage imports from China. In August the Government had attempted to impose a licensing requirements on the imports of laptops and computers but was forced to delay the directive implementation till Oct-31-2023 after strong pushback from the industry.With that attempt thwarteed it has now introduced the so called import management system, through which it will require companies to register and disclose data related to their imports countries from which they import electronic hardware like laptops and Personal Computers and domestic sales value. Eventually the Government will also impose a condition on companies to recepient their supplies from trusted sources, a move squarely aimed at reducing import dependence in China.
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