‘IT hardware mkt to grow 2.5x to $25bn’

As the IT hardware business passes through recession in Europe and the US, India will emerge as the engine that will power the growth of products such as laptops, computers, and servers, with the market expected to grow over 2.5 times in the next three years and cross $25 billion in size, Rajeev Chandrasekhar, minister of state for IT and electronics, has said. Initiatives such as the PLI scheme for IT hardware, as well as a strong demand, will see top global companies consider manufacturing investments in India, Chandrasekhar tells TOI in an interview. Excerpts:
IT hardware market is flat worldwide. Will companies be eager to invest now?
It’s a fact that the industry is flat globally. But India will beat this and come out as one of the fastest-growing markets for the IT hardware industry which comprises tablets, servers, and laptops. India is at a nascent stage of cloud. The cloud is only expanding now, so server demand is going to shoot up as more data centres are built. Also, in segments such as education and health, digitalisation is beginning to pick up. The laptop adoption among students is very low, and so is the case with school tablets. The demand will be equally strong in healthcare which is also digitalising. Beyond this, there is demand from the enterprise sector, and also from the government.
What kind of growth rates do you forecast?
The IT hardware market closed at around $10 billion last fiscal. From here, we now see a growth of 17-18%. And as digitisation of government as well education, healthcare, and enterprise picks up – along with the expansion in cloud – we think this market will hit around $25 billion by 2025-26.
Will there be an incentive for firms making in India?
We are obviously going to make sure it is easier for the guy who manufactures here to get the market in India. We are determined to make those who manufacture in India succeed, come what may. The government policies are aimed at allowing people who manufacture in India to be more successful and to gain better market access in public and private contracts.
When it comes to the new PLI for IT hardware,
what is the unique thing this time around apart from a fatter incentive plan?
For the first time, we are having a PLI that will incentivise system design and innovation, which means incentives to incorporate domestically designed systems, incentives to incorporate domestically designed semiconductors, and incentives to incorporate domestically manufactured chips. This even enables them to get higher incentives.

Leave a Comment

Your email address will not be published. Required fields are marked *