According to statements made by Union Minister Ashwini Vaishnaw, US-based Hewlett Packard Enterprise (HPE) has taken a significant step towards manufacturing high-end servers in India, entering into an initial pact with VVDN Technologies. The collaboration aims to produce servers worth USD 1 billion within the next 4 to 5 years.

The Memorandum of Understanding (MoU) was swiftly signed, a mere 10 days after the joint statement between India and the US regarding the co-production and development of technologies. Notably, this development aligns with India's IT Hardware Production Linked Incentive (PLI) scheme, which recently received approval from the Prime Minister.

Vaishnaw expressed his satisfaction with the agreement, stating, "It is a pleasure to share that HP Enterprise has agreed to produce high-end servers in India under the IT Hardware PLI scheme which was recently approved by our Prime Minister." This MoU represents the first step in the scheme's implementation, and its successful execution is projected to contribute to server production worth USD 1 billion over the next 4 to 5 years.

The minister also disclosed that production is scheduled to commence in November of this year, marking a significant milestone for India's technological advancement and its partnership with a prominent global technology company like HPE.

The collaboration between Hewlett Packard Enterprise (HPE) and VVDN Technologies not only signifies a major investment in high-end server manufacturing but also holds the potential for boosting India's technology ecosystem. The partnership is expected to create employment opportunities and contribute to the country's ambitions of becoming a global manufacturing hub.

By leveraging HPE's expertise and VVDN Technologies' capabilities, the joint initiative aims to enhance India's technological capabilities and strengthen its position in the global IT industry. This development underscores the growing confidence in India as a favorable destination for high-value manufacturing and highlights the commitment of international companies to participate in the country's digital transformation journey.

Image source: The Economic Times