India lacks system to make PCs

Even as Dell Computers’ founder and CEO Michael Dell, who will visit India this March, is impressed with the Indian skilled manpower, he certainly has no intention to start a manufacturing base in India. This comes in the wake of the absence of an ecosystem required to manufacture personal computers.

Talking to HT at the WEF, the Dell chief said, “The inverted duty structure in India does not encourage manufacturing in the country. Dell is importing finished products into India and has no incentive to manufacture there as it is not cost competitive.” He urged the Indian government to facilitate the setting up of a fab which would attract ancillary manufacturers to set up base in the country. “Just as the general economy needs fuel, information technology economy needs semiconductors. I am aware that there is some movement on the AMD front but that, I presume, is not for setting up a fab,” he added.

While the growth of the PC market in India has been encouraging for the PC major, the Dell chief feels what could take business to the next level in India would be allowing companies to sell directly on the Net. “The Indian government should facilitate the offtake of e-commerce so that companies like Dell can become more competitive and sell cheaper computers in India.”