India IT Hardware Market Size, Share, Trends and Forecast by Product Type, Enterprise Size, Distribution Channel, End User, and Region, 2026-2034

India IT Hardware Market Summary:

The India IT hardware market size reached USD 4,613.63 Million in 2025. The market is projected to reach USD 8,879.26 Million by 2034, growing at a CAGR of 7.55% during 2026-2034. The market is driven by the government-led Production-Linked Incentive (PLI) Scheme 2.0, accelerating domestic manufacturing of laptops, tablets, and servers, the expansion of artificial intelligence infrastructure and data center investments creating demand for specialized computing hardware, and the Digital India initiative driving digital transformation across government departments, educational institutions, and public services. Additionally, increasing adoption of cloud computing, remote work infrastructure requirements, and smart city initiatives are expanding the India IT hardware market share.

India IT Hardware Market Outlook (2026-2034):

The India IT hardware market is poised for robust growth over the forecast period, propelled by government incentives under the PLI Scheme 2.0 that are attracting global manufacturers like Dell, HP, Lenovo, and Acer to establish domestic production facilities. Massive investments in artificial intelligence infrastructure, including Google's USD 15 billion AI hub and the IndiaAI Mission's USD 1.24 Billion allocation for GPU capacity expansion, will drive sustained demand for high-performance servers, storage systems, and specialized computing equipment. Furthermore, the Digital India initiative's expansion across 300-plus government departments and 584,000 rural Common Services Centres will create consistent demand for networking equipment, personal computers, and peripheral devices throughout the forecast period.

Impact of AI:

Artificial intelligence is fundamentally reshaping India's IT hardware market by driving unprecedented demand for specialized computing infrastructure including high-performance GPUs, AI-optimized servers, and advanced cooling systems. AI workloads require three to five times more compute capacity than traditional applications, pushing enterprises and data centers to upgrade infrastructure substantially. Major investments such as Google's USD 15 billion AI hub in Visakhapatnam and the IndiaAI Mission's allocation of 44 percent of its budget to build compute capacity exceeding 10,000 GPUs exemplify this transformation. Additionally, AI is optimizing manufacturing processes through predictive maintenance, intelligent energy management reducing data center consumption by 40 percent, and automated quality control systems.

Market Dynamics:

Key Market Trends & Growth Drivers:

Government-Led Production-Linked Incentive Scheme Accelerating Domestic Manufacturing

The Indian government's Production-Linked Incentive (PLI) Scheme 2.0 for IT hardware, approved in May 2023, represents a transformative policy intervention aimed at reducing import dependency and establishing India as a global manufacturing hub for computing devices. The scheme allocates ₹17,000 crore (approximately USD 2 billion) over six years to incentivize domestic production of laptops, tablets, personal computers, servers, and ultra-small form factor devices. As of December 2024, 27 global IT hardware manufacturers, including industry giants such as Dell, HP, Lenovo, Acer, and Asus, have received approval under the scheme, with 23 companies ready to commence manufacturing immediately. The initiative offers incentives of up to 5 percent on incremental sales, substantially higher than the roughly 2 percent offered under the first phase, making it financially attractive for both multinational corporations and domestic players. The scheme's hybrid category allows companies to benefit from combined global expertise and local manufacturing capabilities. By December 2024, the PLI scheme had already generated production worth ₹10,014.72 crore, attracted investments of ₹522.17 crore, and created 3,879 direct jobs. The program targets generating ₹3.5 trillion (USD 42 billion) in production value over six years while creating approximately 200,000 jobs, comprising 50,000 direct and 150,000 indirect employment opportunities. In April 2025, Dixon Technologies signed a landmark ₹1,000 crore MoU with the Tamil Nadu government to establish a state-of-the-art laptop and PC manufacturing facility in Oragadam near Chennai, which will produce HP-branded devices and create over 5,000 jobs with an annual capacity of 2 million units. This exemplifies how the PLI scheme is successfully attracting substantial private investments and establishing world-class manufacturing infrastructure across India, fundamentally transforming the country's position in global IT hardware supply chains.

Expansion of AI Infrastructure and Data Center Investments Driving Hardware Demand

India is experiencing an unprecedented surge in artificial intelligence infrastructure development and hyperscale data center deployments, creating massive demand for specialized IT hardware including high-performance servers, GPU clusters, advanced storage systems, and networking equipment. The rapid adoption of AI technologies across industries, from healthcare and finance to smart cities and autonomous systems, requires computational power that far exceeds traditional enterprise IT infrastructure, with AI workloads demanding three to five times more compute capacity than conventional applications. This transformation is attracting billions of dollars in investments from global technology leaders seeking to establish India as a strategic AI hub. In October 2025, Google announced a landmark USD 15 billion investment over five years to establish an AI hub in Visakhapatnam, Andhra Pradesh, representing the company's largest investment outside the United States and its biggest commitment to India. The facility will combine purpose-built data center infrastructure with gigawatt-scale compute capacity, large-scale renewable energy sources, and expanded fiber-optic networks, all developed in partnership with AdaniConneX and Airtel. The IndiaAI Mission, launched in March 2024 with a substantial budget of USD 1.24 billion, has strategically earmarked 44 percent of its allocation to build compute capacity exceeding 10,000 graphics processing units over five years, strengthening the foundation for AI advancement nationwide. Microsoft has similarly committed USD 3 billion to expand cloud and AI infrastructure across India over two years, including establishing new data centers. Major domestic conglomerates are also making substantial commitments, with Reliance Industries planning what could become the world's largest AI-enabled data center in Jamnagar, Gujarat, with a massive capacity of three gigawatts. These developments are fundamentally reshaping procurement patterns across the India IT hardware market growth, as enterprises transition from general-purpose computing infrastructure to specialized AI-optimized systems featuring high-density GPU configurations, advanced cooling technologies, and high-bandwidth networking capabilities that support the computational intensity required for training large language models, real-time inference, and edge computing applications.

Digital India Initiative and Government Digitalization Programs Expanding IT Hardware Adoption

The Digital India initiative, extended through 2021-2026 with a comprehensive budget of ₹14,903 crore, represents one of the world's most ambitious national digital transformation programs, systematically modernizing governance infrastructure and expanding digital access across urban and rural India. This government-led initiative is creating sustained, large-scale demand for IT hardware across multiple categories including personal computers, servers, networking equipment, storage systems, and peripheral devices as ministries, state governments, educational institutions, and public service centers upgrade their technological capabilities. The National Informatics Centre's MeghRaj initiative, a cornerstone of this transformation, now provides cloud-based solutions for over 300 government departments, supported by National Data Centres with storage capacity exceeding 100 petabytes strategically located in Delhi, Pune, Bhubaneswar, and Hyderabad, with a new Tier-III facility under development in Guwahati to bridge the digital divide in northeastern states. As of October 2024, over 584,000 Common Services Centres have become operational across rural areas, each requiring computing equipment, networking infrastructure, and peripheral devices to deliver digital access to government schemes, educational resources, telemedicine services, and financial inclusion programs. These centers are systematically bridging the urban-rural digital divide and creating unprecedented demand for affordable, reliable IT hardware in previously underserved regions. The initiative has achieved remarkable penetration, with Aadhaar generating over 138 crore unique digital identity numbers as of mid-2024, while DigiLocker surpassed 37 crore users and facilitated over 776 crore digital document verifications as of December 2024. The Unified Payments Interface has become a global benchmark for digital payments infrastructure, processing 24,100 crore financial transactions with volumes increasing from 131.14 billion in FY24 to 185.85 billion in FY25, representing a substantial 42 percent growth rate that requires continuous expansion of backend server infrastructure, storage capacity, and networking equipment. Educational digitalization through platforms like DIKSHA, which has completed 556.37 crore learning sessions, necessitates substantial hardware deployments across schools and universities. User-friendly platforms such as UMANG, with over 7.12 crore users, and various e-governance applications are systematically transitioning government services online, requiring continuous infrastructure upgrades at central, state, and local government levels. Looking forward, the government is expanding this digital public infrastructure by enhancing existing platforms and launching new initiatives including AI-ready courses in 200 universities, 50,000 Atal Tinkering Labs in government schools by 2031, and a Centre of Excellence in Artificial Intelligence for education with a ₹500 crore outlay, all of which will generate sustained demand for diverse IT hardware categories throughout the forecast period.

Key Market Challenges:

Heavy Import Dependency and Slow Pace of Domestic Manufacturing Scale-Up

Despite strong policy support and incentives, India’s IT hardware sector continues to struggle with limited domestic manufacturing capacity and high import dependency. Over 90% of laptops sold in the country are imported, mainly from China, while India contributes only about USD 5 billion to the USD 400 billion global IT hardware market. The Production-Linked Incentive (PLI) Scheme 2.0, designed to strengthen local manufacturing, attracted 27 global applicants but has faced major implementation hurdles. As of December 2024, many approved companies are falling short of production and revenue targets, with several yet to commence full operations. Incremental investments reached only ₹501 crore in 2024, far below projections. Persistent price disadvantages of 5–7% for locally assembled products, driven by higher component costs, limited scale, and weak supply ecosystems, continue to make imports more viable. While a few firms like VVDN Technologies and Flextronics are meeting early targets, others, such as Dixon Technologies, face operational delays. Recognizing these gaps, the government extended the Import Management System until December 2025 to prevent supply disruptions, underscoring the need for a more robust component ecosystem, skilled workforce, and infrastructure to achieve sustainable, competitive manufacturing.

Semiconductor Supply Chain Vulnerabilities and Component Shortages

India’s IT hardware manufacturing ambitions face critical headwinds from semiconductor supply chain weaknesses and heavy reliance on imports. Nearly 70% of semiconductors are sourced from East Asia, leaving domestic manufacturers exposed to global supply disruptions, geopolitical tensions, and price volatility. In FY 2024–25, DRAM and NAND prices surged by up to 20%, sharply increasing production costs for local firms. The scarcity of high-performance GPUs, crucial for AI and advanced computing, has led to lead times of over a year, stalling AI server projects and inflating working capital requirements. India currently lacks semiconductor fabrication facilities, with the first commercial wafer plant, Tata-PSMC in Gujarat, expected only by late 2025, focusing initially on mature nodes rather than advanced chips. This dependence has caused production slowdowns across sectors, including a 380,000-unit vehicle loss in the auto industry and double-digit price hikes in electronics. The country also faces a projected shortage of 250,000–300,000 skilled semiconductor professionals by 2027. With India investing just 0.65% of GDP in research and development (R&D), far below peers like South Korea, the path to semiconductor self-reliance remains long and capital-intensive, requiring substantial policy continuity and ecosystem investment.

Infrastructure Constraints and Skilled Workforce Shortages

India’s efforts to expand IT hardware manufacturing face serious constraints in infrastructure, skilled manpower, and ecosystem maturity. Data centers, crucial for digital transformation and AI infrastructure, require high-reliability power, advanced cooling systems, and continuous electricity, conditions still inconsistent outside major metros. The nation’s current 0.4 GW data center capacity must grow manifold to support AI-driven demand, necessitating major investment in power generation and grid stability. Semiconductor and electronics manufacturing add further complexity, demanding ultrapure water, cleanrooms, and high-precision waste systems. However, India faces a shortage of 250,000–300,000 semiconductor professionals by 2027, alongside a broader skills gap in electronics manufacturing. Limited R&D spending, just 0.65% of GDP, has hindered innovation and training capacity, while educational curricula remain outdated. Fragmented state-level initiatives and lack of centralized coordination have also diluted efficiency and scale benefits. Although India’s focus on mature semiconductor nodes above 28 nm is a practical starting point, it risks missing opportunities in advanced sub-10 nm markets that drive global competitiveness. Addressing these structural challenges will require long-term investments in power infrastructure, education reform, research funding, and cohesive national planning.

India IT Hardware Market Report Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India IT hardware market, along with forecasts at the country and regional levels for 2026-2034. The market has been categorized based on product type, enterprise size, distribution channel, and end user.

Analysis by Product Type:

• Personal Computers
• Servers and Storage Devices
• Networking Equipment
• Printers and Scanners
• Monitors and Displays
• Peripherals
• Others

The report has provided a detailed breakup and analysis of the market based on the product type. This includes personal computers, servers and storage devices, networking equipment, printers and scanners, monitors and displays, peripherals, and others.

Analysis by Enterprise Size:

• Small and Medium Enterprises (SMEs)
• Large Enterprises

A detailed breakup and analysis of the market based on the enterprise size have also been provided in the report. This includes small and medium enterprises (SMEs) and large enterprises.

Analysis by Distribution Channel:

• Online Retailers
• Offline Retailers
• Direct Sales
• Others

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes online retailers, offline retailers, direct sales, and others.

Analysis by End User:

• Individual Consumers
• Government and Public Sector
• Educational Institutions
• Healthcare Sector
• Retail
• Others

A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes individual consumers, government and public sector, educational institutions, healthcare sector, retail, and others.

Analysis by Region:

• North India
• South India
• East India
• West India

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.

Competitive Landscape:

The India IT hardware market exhibits a moderately competitive landscape characterized by the presence of established global multinational corporations, emerging domestic contract manufacturers, and specialized component suppliers competing across multiple product categories and customer segments. The market is experiencing a significant transition as international brands like Dell, HP, Lenovo, Acer, and Asus shift from import-focused strategies to establishing domestic manufacturing operations under the Production-Linked Incentive Scheme 2.0, fundamentally altering competitive dynamics. Competition revolves around multiple dimensions including product quality and reliability, pricing strategies, after-sales service networks, distribution channel access, brand reputation, and increasingly, local manufacturing capabilities that provide cost advantages and faster time-to-market. Domestic contract manufacturers like Dixon Technologies, Bhagwati Products (Micromax), and others are gaining prominence by partnering with global brands to establish assembly operations, leveraging local market knowledge and cost structures. The artificial intelligence and data center segments are witnessing particularly intense competition as enterprises upgrade infrastructure, with companies differentiating based on performance specifications, energy efficiency, cooling technologies, and ability to deliver integrated solutions rather than standalone hardware components.

India IT Hardware Industry Latest Developments:

• September 2024: Lenovo announced it will manufacture AI servers in India through its Puducherry facility, which has been operational since 2005 and produced over 7 million devices in the year ending March 31, 2024. This expansion represents Lenovo's strategic response to growing domestic market demand for artificial intelligence infrastructure and global supply chain diversification efforts. The move follows similar manufacturing expansions by other global technology companies including Foxconn, HP, Cisco, Acer, Asus, and Dell, all seeking to tap into India's expanding market while building supply chain resilience.

India IT Hardware Market Report Coverage:

Key Questions Answered in This Report:

• How has the India IT hardware market performed so far and how will it perform in the coming years?
• What is the breakup of the India IT hardware market on the basis of product type?
• What is the breakup of the India IT hardware market on the basis of enterprise size?
• What is the breakup of the India IT hardware market on the basis of distribution channel?
• What is the breakup of the India IT hardware market on the basis of end user?
• What is the breakup of the India IT hardware market on the basis of region?
• What are the various stages in the value chain of the India IT hardware market?
• What are the key driving factors and challenges in the India IT hardware market?
• What is the structure of the India IT hardware market and who are the key players?
• What is the degree of competition in the India IT hardware market?

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India IT hardware market from 2020-2034.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India IT hardware market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India IT hardware industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.