Dell wants to make India a PC Hub, eyes lower taxes on exports

New Delhi: US personal computer manufacturer Dell wants to make India a hub for desktop and laptop manufacturing and use its unutilised capacity in India to export to neighbouring countries in West Asia, if the government reduces taxes on exports, the Economic Times said in a report.

“Our plant’s capacity is 3 million units. We are making around 1.4-1.5 million units. The balance capacity can very easily be met by a few countries around us,” the ET report quoted Dell India president Alok Ohrie as saying.

Dell has a manufacturing facility in Tamil Nadu’s Sriperambudur (near Chennai) which produces laptops and desktops for the local market. Worth mentioning here is that India’s PC market was around 9.3 million in 2018 and has seen muted growth in last one year.

“Two years back, there was a change that was brought into Foreign Investment Promotion Board (FIPB) and they reintroduced a tax that existed for any export. It is about 4% and that is substantial,” Ohrie told the business daily.

According to the publication, Dell is in talks with the government through the industry body Manufacturers Association for Information Technology (MAIT) to represent this matter.

Dell is hopeful that the government will take a positive decision on this matter. “Very positive…they have asked us to consolidate the total number that we would see,” Dell said.

The Narendra Modi government has been trying hard to make India a manufacturing hub. Although the govt has been successful in attracting smartphone firms such as Samsung and Wistron, a supplier of Apple to locate manufacturing units due to its large smartphone subscriber base, it has struggled with getting large-scale investment in computer hardware.

Dell, which is growing at more than 15% in India, has the second-largest facility in the country in terms of workforce after the US and complex technology works have been happening in India offices, the business daily mentioned.
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