Having established itself as a major information technology and related services sector, India saw an increasing number of hardware manufactures attracted to the country driven largely by the promising domestic market.

While PC manufacturers Dell, Hewlett-Packard, and HCL have expanded through new units that can produce 6-6.5 million units, the notebook segment doubled with shipments close to 200,000 a quarter and the dependent peripheral manufacturing also getting a major boost in investments. The current PC installed base is mere 18 million when compared to the population size of 1.2 billion but this base is increasing thanks to price cuts by chip vendors, a strong demand from small-medium enterprises, expansion of usage in education, support from the Government, and the emergence of demand from second and third tier cities. Advances in technology are also seeing a sharp drop in prices as PCs and peripherals turn obsolete rapidly. While this good news for the Indian consumer who gets better technology at lower prices, lack of consumer-oriented laws and systems, vendors tend to dump out-dated products or abandon older models faster without support systems in place leaving consumers stranded with expensive (by Indian standards) equipment with little support system in place. This is one of the main reasons why word-of-mouth campaigns has arrested PC market expansion (estimated at 25%-30%) and more than 4-5 times lower than the rate of growth in China. Despite these hurdles, the growth rate is expected to be sustained with consumption of electronic equipment expected to increase to $363 billion in 2015 from around $30 billion at the beginning of 2006.

Telecommunications manufacturing saw significant boost with major players such as Nokia, Motorola, and Cisco revealing plans to manufacture their products. The Manufacturers' Association for Information Technology (MAIT) estimates that such investment has crossed the $1.5 billion mark in 2006.