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Lenovo Introduces PMA-compliant PCs with Made-in-India Motherboards

Asia Manufacturing Review Team | Saturday, 25 November 2023

 Asia Manufacturing Review Team

Lenovo, India's second-largest PC manufacturer, introduced PMA-compliant PCs with Indian-made motherboards on Friday. Lenovo India's chief operating officer, Saurabh Agrawal, described this as an important step in strengthening and expanding the company's manufacturing presence in the nation.

Lenovo currently meets the criteria for the Class 1 PMA category, with over 50% of components acquired through local manufacture for a specified range of goods, according to Agrawal. He acknowledged the company's successful achievement of this goal, emphasizing the necessity of localization in reaching Class 1 PMA status.

On Friday, Lenovo, India's second-largest PC manufacturer, unveiled PMA-compliant PCs with Indian-made motherboards. Saurabh Agrawal, Lenovo India's chief operating officer, called this as a crucial step in strengthening and extending the company's manufacturing presence in the country.

According to Agrawal, Lenovo presently meets the standards for the Class 1 PMA category, with over 50% of components sourced through local manufacture for a given range of items. He congratulated the company on its achievement of this goal, underlining the importance of localization in achieving Class 1 PMA status.

A product must meet specified government standards on the extent of local manufacturing and component sourcing in order to qualify as a Class 1 PMA. To qualify for this top category, a higher percentage of components must be acquired locally, generally more than 50%, and manufactured in the country.

Being recognised as a Class 1 PMA increases a product's or company's eligibility to participate in government procurement processes, particularly in tenders where priority is given to domestically manufactured goods. It represents a substantial level of localization and compliance with the government's policy to promote and prioritize domestically produced goods.

What exactly is the PLI (Production Linked Incentive Scheme)?

The PLI Scheme, short for Production Linked Incentive Scheme, is a Government of India initiative. Its primary purpose is to persuade foreign corporations to seek a workforce within the country, so boosting employment, as well as to stimulate local production in order to provide smaller job possibilities.

The government stated earlier this month that 27 companies, including Dell, HP, and Foxconn, had been approved under the new production-linked incentive (PLI) plan for IT hardware.

This action is consistent with India's efforts to recruit IT hardware companies through legislative perks and incentive packages, with the goal of firmly establishing itself as a global center for cutting-edge manufacturing. "I am pleased to announce the approval of 27 companies under the PLI IT hardware scheme," said Ashwini Vaishnaw, Minister for Electronics and IT. Approximately 95% of these... 23 enterprises are ready to begin producing on day one."

He went on to say, "This positions us to become a big player in the manufacturing of PCs, servers, laptops, and tablets."