These goods can be imported only with a valid License for Restricted Imports. This measure is anticipated to reduce electronic imports from countries such as China.
India has implemented immediate restrictions on the import of laptops, tablets, other personal computers, and servers, as stated in an amendment by the Ministry of Commerce and Industry. This amendment introduces a licensing requirement for imports, with analysts suggesting that the move aims to bolster local manufacturing endeavors.
As per the government notification, the import of laptops, tablets, all-in-one personal computers, ultra-small form factor computers, and servers falling under HSN 8741 will be subject to restrictions. To import these items, a valid license for restricted imports will be required. However, this restriction does not apply to passengers carrying the mentioned devices in their baggage.
In a move reminiscent of the past curb on smart TV imports, the recent restriction on laptops, tablets, and servers is expected to support local manufacturing efforts in India. Though New Delhi has not provided a specific explanation, analysts point to the success of the ban on smart TV imports nearly three years ago, which significantly bolstered domestic production.
In recent years, India has been offering incentives to companies to promote domestic production. This initiative has been highly effective in attracting numerous smartphone manufacturers, and now it is also generating growing interest among chipmakers and semiconductor producers.
Back in May, the Narendra Modi government introduced a $2 billion scheme with the purpose of promoting local businesses engaged in hardware manufacturing, including laptops, PCs, servers, and related edge computing kits. This scheme marked an upgrade from the previous program, which had a budget of $892 million set by the government.
Pankaj Mohindroo, Chairman of the Indian Cellular and Electronics Association, expressed confidence that the policy announcement revolves around providing secure digital access to the growing number of digital citizens in the country. He anticipates that valid licenses will be granted to trusted industry partners, facilitating Ease of Doing Business (EoDB) and unrestricted access to trusted brands for digital consumers.
Companies such as Dell and HP have already established manufacturing facilities in India. The Indian government’s objective is to further expand local production, aiming to transform the country into a preferred destination for Apple and its manufacturing partners to establish a global manufacturing hub. Despite these efforts, India currently spends billions of dollars on importing laptops and other hardware.
As per government data shared in parliament last December, the import value of finished electronic goods in India witnessed a 32% growth, reaching $43 billion in 2021-22 from $32 billion in 2019-20. However, the implementation of incentives and schemes to stimulate local production has contributed to a decline in the share of imported finished electronic goods (including components) in the overall imports of electronic goods, dropping to 64% in 2021-22 from 69% in 2019-20.
Market research firm Counterpoint, based in Hong Kong, estimates that during the first half of 2023, approximately 30-35% of laptops and 30% of tablets shipped to India were manufactured locally.
