As the government has instructed laptop and server manufacturers to source their hardware from "trusted" suppliers, American computer giant Hewlett & Packard (HP) has said it is ready to work according to the latest government regulations. This comes as manufacturers work towards meeting their production-linked incentive (PLI) commitments, The Times of India (ToI) reported.
Speaking about the "restrictions" introduced by the government, HP's Chief Operating Officer for the global personal systems category, Ketan Patel, told ToI, "Whatever the norms of the PLI are, we will adhere to them. Now, if that means there are restrictions concerning specific geographies or specific regulations under the PLI document, we will comply with what the document stipulates."
While Patel avoided questions specifically centred on China, he said HP is mindful of regulatory directions issued by individual governments, including India's. "If a government makes a decision in a significant market like India, we will have to comply to maintain our presence in the country," Patel added. He reiterated that the company keeps a close watch and works closely with its experts to understand the impact of such regulations.
The PLI benefits for laptop and server makers have been increased from Rs 7,300 crore to Rs 17,000 crore. The government has clearly stated that companies need to source their components locally or from "trusted" locations, which does not include China. Notably, procurements from China account for around 80 per cent of the total. Expressing his thoughts on the subject, Minister of State for IT and Electronics Rajeev Chandrashekhar said, "We want the supply chain that is going to power the users of India's internet, India's cloud, and the users in India to be absolutely trusted," the ToI report added.
Apart from this, HP plans to start selling its refurbished devices to expand into smaller towns with affordable products. Patel told ToI, "India is a strategic market, and as for refurbished devices, it's always a great model for specific use cases or applications. We are going to offer it in India very soon."
