HPE has partnered with original design equipment manufacturer VVDN to begin manufacturing high-volume servers in India under the revised production linked incentive, or PLI scheme.

The US-based computing technology and solutions provider will produce servers worth more than $1 billion from VVDN's plant in Manesar, Haryana, over the next five years, the company announced on Tuesday.

"Today's announcement is a significant milestone for HPE and reaffirms our commitment to the Government of India's 'Make in India' initiative for a self-sufficient India," said Antonio Neri, president and CEO of HPE.

"India is a strategic market for HPE's business, talent, and innovation, as well as manufacturing." Customers in India continue to rely on HPE to assist them in digital transformation, and our 14,000 team members in India play an important role in driving our edge-to-cloud strategy. "We are excited to expand our strong presence in this important country by establishing a manufacturing operation," he added.

With a rapidly growing electronic manufacturing ecosystem in India, the facility will support the country's growing demand while also strengthening and diversifying HPE's global supply chain.

Ashwini Vaishnaw, minister for railways, communications, electronics and information technology said, “We welcome HPE’s decision to start their manufacturing line in India, as it will enhance domestic production capacities." The recently announced PLI Scheme 2.0 aims to make India a global hub for electronics system design and manufacturing (ESDM). “We believe large-scale IT hardware manufacturing will help in broadening and deepening the manufacturing ecosystem," he added.