Though the global financial crisis and the depreciating rupee have dented the margins of the hardware manufacturing companies in India, increasing attention of policy makers is likely to give a boost to the once beleaguered hardware industry. Yet, India is far from becoming a global hardware manufacturing hub.

At the beginning of the current decade, survival was important for the Indian computer hardware industry rather than growth. From that position, the sector has swiftly risen to a position where it can face head-on battle with global players. Today, India is the fastest growing IT markets in the Asia Pacific region according to International Data Corporation (IDC) research. The hardware sector currently accounts for around 56% of total IT spending and is growing faster than other segments of this industry. Indian hardware industry has been more or less akin to the PC market since last few years. Indian hardware companies have been importing components and assembling the same under different names owing to lack of proper government support for hardware manufacturing in the country. This model worked out initially and as the computer and Internet awareness increased, the PC market also grew substantially over the last five years. Now, the customers are slowly moving towards branded PCs giving boost to many computer manufacturing companies like HCL. Global renowned companies like HP, Dell, Lenovo, etc., are also planning to set up their manufacturing units in India.

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