Samsung to start manufacturing laptops in India from next month: Report

The laptops will be made at Samsung's Noida plant, which currently produces mobile phones

South Korea-based electronics giant Samsung plans to begin manufacturing laptops in India starting next month, according to a report by Mint published on Tuesday. The report cited two individuals familiar with the matter. This move coincides with the Centre's efforts to encourage domestic hardware production through a combination of tax breaks, financial incentives, and import restrictions.

Samsung's Noida factory, which is currently focused on mobile phone production, will be the production site for the laptops. Inaugurated in 2018, the facility holds the distinction of being the world's largest mobile phone factory. It has recently been expanded to include a laptop manufacturing unit with an estimated annual capacity of 60,000 to 70,000.

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Samsung thus joins the ranks of the first few international companies to initiate laptop production in India without a local collaborator, following new regulations imposed by the Centre to curb imports.

Although the import restrictions have been announced, their implementation may take some time. Reuters has reported that the Ministry of Information Technology proposes a streamlined import registration process set to commence on November 1. Under the new "import management system," companies must obtain "registration certificates" for importing laptops, tablets, and personal computers. This replaces the earlier licensing requirement stipulated in the August 3 order.

The Ministry shared this proposal with industry representatives in a meeting last week.

In addition to import limitations, the Centre has also launched a production-linked incentive (PLI) scheme for IT hardware, offering incentives totalling Rs 17,000 crore. Samsung chose not to apply for this scheme, the application period for which concluded in August. Of the 40 applications received, approval has been granted to 30 companies for participation in the PLI scheme.

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Media reports also indicate that other technology firms such as Asus, Acer, HP, and Lenovo are exploring partnerships with local manufacturers to produce IT hardware in India.

India's electronics imports, including laptops, tablets, and personal computers, amounted to $19.7 billion in the financial period from April to June, marking a 6.25 per cent increase year-on-year.