Union Electronics and IT Minister Ashwini Vaishnaw announced that HP Inc and Padget Electronics have signed a memorandum of understanding (MoU) to manufacture HP laptops, personal computers, and All-in-One PCs in India. This new manufacturing initiative will take place at a new factory in Tamil Nadu, marking a significant milestone in the country’s electronics manufacturing sector.

Vaishnaw, who also serves as the Union Minister for Railways and Information & Broadcasting, highlighted this development as a major achievement of the production-linked incentive (PLI) scheme under Prime Minister Narendra Modi’s ‘Make in India’ program. He noted that electronics manufacturing in India has seen remarkable growth, surging from Rs 2.4 lakh crore in 2014 to over Rs 10 lakh crore in the past decade, employing more than 10 lakh people.

The production of HP devices is expected to start in January next year at the Oragadam facility, an industrial suburb of Chennai. The factory is projected to manufacture up to 20 lakh units annually within two years of commencing operations. This initiative will generate over 1,500 direct jobs and Padget Electronics, a subsidiary of Dixon Technologies, plans to gradually increase local production of components, modules, and peripherals, further expanding job opportunities.

The partnership reflects a broader trend of global electronics brands collaborating with Indian manufacturers as the country’s electronics ecosystem continues to grow. The IT hardware sector in India, though still developing, is expected to benefit significantly from the revised PLI 2.0 scheme. With a budgetary outlay of Rs 17,000 crore and an extended tenure of six years, the scheme aims to boost incremental production by Rs 3,35,000 crore and create 75,000 direct jobs along with over 2,00,000 indirect jobs, thereby substantially enhancing employment prospects in the sector.