The hard disk drive and storage solutions manufacturer is likely to officially announce the decision by the first week of September.
Maxtor's DiamondMax and MaxLine hard disk drive products are already available with three years' warranty, while its Atlas SCSI drives come with a five-year warranty.
This move is seen, in part, as a response to Seagate's five-year warranty extension announced in July. Incidentally, Western Digital, another hard disk manufacturer, plans to set up an office in India.
Maxtor recently announced that it has started shipping its 300 Gb Diamond Max 10 HDDs, which come with a 16MB buffer. These drives use single-chip Serial ATA technology and are targeted at PC users, system integrators, graphic artists and other multimedia PC users.