Mr Dell said the American firm had still to decide on a location in India to build their new factory but had been in discussions with politicians of the country.
"We have been in discussions with a number of state governments in terms of infrastructure and logistics," he said.
Dell's new 20,000 Indian workers aim is an increase on its last target of 15,000 announced in January.
"We will ensure a major recruitment push in engineering talents," said Mr Dell.
A growing number of Western firms are also relocating to India, where there is a good supply of skilled, English-speaking potential employees.
