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Local production to do the heavy lifting amid India’s new import curbs: Fitch
PC sales to reach 34.44 million units by 2027.
India’s fresh import restrictions on computers are not expected to hurt overall sales as global manufacturers are already expanding production in the country, according to Fitch Solutions.
Fitch forecasted annual sales volume of all types of computers in the country to steadily rise from 24.05 million units this year to 34.44 million units by 2027.
International manufacturers have expanded their domestic production capacity in recent years while many are expected to follow suit, it said, noting that this is “a welcome boost to the initiative and (can) offset any negative impacts from new import restrictions.”
To support local manufacturing under its “Made in India” program, the country, starting November, will require suppliers of imported laptops, tablets, personal computers and other devices to obtain a license before they can bring these products into the country.
Fitch noted Google’s recent partnership with HP to manufacture its Chromebook PCs domestically starting this month, while Korea’s Samsung Electronics is already considering expanding its factory in Noida City to accommodate laptop production, as reported by local media.
Local news outlets have also speculated iPhone maker Apple will soon start manufacturing iPads in the country.
Another growth driver for India’s PC market are the affordable high-end products like Chromebooks, which it expects to gain popularity among consumers over the next five years, especially in the education sector.
It said start-ups will also likely shift away from relying on smartphones and tablets in their businesses, and towards sub-notebooks that are more flexible and have lower total cost of ownership.
“Avoiding import duties or volume limits will be key to ensuring that monetising this opportunity can be optimised,” it said.
