India's Computer Market Surge: A Rising Electronics Hub

India's computer market is predicted to grow annually by 5.1% over the next five years. Amid increasing imports of laptops, led primarily by Apple, India aims to bolster domestic manufacturing, potentially reintroducing import rules and leveraging production-linked incentives to expand its electronics manufacturing industry.

India's computer market is anticipated to witness a 5.1% annual growth over the forthcoming five years, according to a report by S&P Global Market Intelligence. The study highlighted a notable uptick in laptop imports, with a year-over-year increase of 10.8% by August, primarily driven by shipments associated with Apple.

As India contemplates a boost in laptop assembly, parallel growth in component imports may occur, predominantly from mainland China and Hong Kong. This development could prompt the government to incentivize the reshoring of both component manufacturing and assembly.

The intelligence report also suggests a potential return to restrictive import regulations on laptops by 2025, following a relaxation in 2023, alongside exploring production-linked incentives to strengthen domestic manufacturing. India's diminishing regulatory risks compared to international counterparts enhance its appeal as a burgeoning electronics manufacturing hub.

(With inputs from agencies.)