India has taken a significant step towards promoting local manufacturing by restricting the import of laptops, tablets, and personal computers, effective immediately. According to a government notice issued on Thursday, the import of these electronics will now require a valid license for restricted imports.
The move aims to drive manufacturing within the country and reduce reliance on foreign imports. Ali Akhtar Jafri, former director general at electronics industry body MAIT, emphasised that this is not just a nudge but a strong push to bolster domestic production.
In an effort to attract big-ticket investments in IT hardware manufacturing, India has extended the deadline for companies to apply for its $2 billion manufacturing incentive scheme. This scheme covers products such as laptops, tablets, personal computers, and servers and is a crucial part of India’s ambition to become a prominent player in the global electronics supply chain. The country aims to achieve annual electronics production worth $300 billion by 2026.
Currently, key companies like Dell, Acer, Samsung, LG Electronics, Apple Inc, Lenovo, and HP Inc are selling laptops in the Indian market, with a considerable portion being imported from countries like China. Shares of Indian electronic maker Dixon Technologies rose over 5% following the news.
The intention behind these restrictions appears to be focused on reducing heavy imports and encouraging the production of certain goods domestically. Laptops, tablets, and personal computers make up about 1.5% of India’s total annual imports, with almost half of them being purchased from China, as per government data.
In the past, India has implemented high tariffs on products like mobile phones to stimulate domestic output. While the country produced mobile phones worth $38 billion last year, the local production of laptops and tablets was only $4 billion, according to estimates from industry body India Cellular and Electronics Association.
The recent move is expected to further boost local manufacturing and support India’s goal of becoming a prominent player in the global electronics industry
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