India Mulls Curbs On Laptop Import To Fuel Local Manufacturing

India is reportedly planning to impose restrictions on the import of laptops, tablets and personal computers starting next year.

As per Reuters, the move aims to encourage global giants like Apple, Dell and Lenovo to boost local manufacturing, reshaping an industry valued at $8-10 Bn.

This comes days after it was reported that the Centre is planning to extend the existing regime for the import of IT hardware products.

The report further added that the government will initiate discussions with stakeholders next week, potentially delaying the restrictions if necessary.

The new system will require companies to obtain prior approval for imports, a shift from the current setup, which allows free imports after an online registration process. 

It is pertinent to note that last year, Directorate General of Foreign Trade (DGFT) imposed restrictions on the import of certain IT hardware items, including servers, computers and data processing machines.

Subsequently, the union government allowed companies to import such items but after applying for government authorisation to import these products. At the time, the Centre attributed the restrictions to national security concerns.

Information Technology Industry Council (ITIC), which represents industry giants like Apple, Dell, HP and Lenovo, also reportedly urged the MeitY in August to shed more clarity on the import policy for the seven IT hardware products post the deadline.

Notably, imports of the IT hardware products appear to have taken a hit since the implementation of the regime in October 2023. 

As per reports, the imports of these products declined 3.4% year-on-year (YoY) to $8.4 Bn between October 2023 and March 2024. 

However, despite a decline overall, the imports of the seven IT hardware products from China stayed flat YoY at $5 Bn during the same period too and accounted for 58%-60% of total imports.