Lenovo's plans mark another win for India as Prime Minister Narendra Modi tries to attract more technology investment into the country.

Lenovo Group Ltd (聯想) started building artificial intelligence (AI) servers in India’s south, the latest boon for the rapidly growing country’s push to become a high-tech powerhouse.

While India’s tech manufacturing sector is still small compared with China, it now makes increasingly sophisticated products such as iPhones.

Lenovo India managing director Shailendra Katiyal said on Tuesday that the company will make servers locally and also export them from its manufacturing unit in Puducherry.

Another win for the Make In India policy, but a small one in terms of product volume Lenovo revealed on Tuesday that it will manufacture AI servers at its plant in Puducherry, India, and has opened a new infrastructure research and development lab in Bengalaru.

The company’s Puducherry plant, operational since 2005, has been upgraded to produce enterprise AI and GPU servers.

China-based Lenovo has announced plans to begin manufacturing AI servers at its Puducherry plant in southern India and has established a dedicated AI servers R&D lab in Bengaluru. This initiative could position India as one of the few countries with significant AI server production capabilities.