Virendra Pandit
New Delhi: Partnering with Hewlett Packard (HP) Inc., Alphabet Inc.’s Google on Monday started manufacturing its Chromebook laptops in India to push Prime Minister Narendra Modi’s vision of an Atmanirbhar Bharat (Self-Reliant India).
Over the last few years, India has been expanding its footprint in electronics manufacturing as different tech companies started following their “China Plus” policies to diversify production beyond China amid the Washington-Beijing trade war.
To give a push to its Make in India drive, New Delhi, on August 4, 2023, imposed restrictions on the import of laptops, tablets, and personal computers. This meant that companies could no longer import these devices into India without a license. The government said that the move was aimed at boosting domestic manufacturing of laptops and PCs.
Alphabet Inc. said its Google started making Chromebook laptops in India, the latest among global technology companies to expand assembly in the key growth market.
For this, Google has partnered with HP Inc. to manufacture Chromebooks in India, Alphabet Chief Executive Officer Sundar Pichai said on Monday on X, formerly known as Twitter.
The latest move will help Google boost supply in India and compete more effectively with Windows computers from manufacturers like Dell Technologies Inc. and Asustek Computer Inc.
Alphabet’s fresh move is also another win for Prime Minister Narendra Modi’s USD 2 billion incentive plan to have tech giants make India their production base, the media reported.
Local manufacturing will help Google maintain a constant supply in India and avoid potential import curbs. Chromebooks are typically priced at the lower end of the market and have thin profit margins, making them sensitive to any tariff measures.
According to media reports, New Delhi is loosening its planned restrictions, announced in August, on imports of laptops, tablets, and other IT hardware, giving manufacturers more time to prepare for potential curbs.
The Chromebooks will be built at a Flex Ltd. facility near Chennai, Tamil Nadu, where HP has been manufacturing laptops and desktops since 2020.
Production of the Chromebooks started on Monday (October 2) with the manufacturers targeting mainly at the education sector, HP said in a statement.