Sigh of relief for the laptop, and tablet manufacturing companies as government delays its decision of the import restrictions of laptops, and tablets till 31st  October, 2024.
On Thursday government released a notification stating restrictions on the import of laptops, tablets, and personal computers with immediate effect. The reasons cited for the import curbs were to promote self-sufficiency and security perspectives. This surprised the industry executives as the move was sudden and unexpected.Â
Companies like Dell, Apple, Lenovo, HP, and Asus are the main seller in Indian market. They are expected to be the hardest hit.
Latest notification on import restrictions
The government has given importers of laptops, tablets, and servers an extra two months to comply with new import restrictions. The deadline for obtaining a licence to import these products has been extended from 1 August to 1 November. Until then, importers can clear consignments without a licence.
Meanwhile after the earlier notification many consignments were being confiscated at the ports. The move seemed all of a sudden, therefore didn’t have proper directives
The new restrictions are part of the government’s efforts to boost domestic manufacturing of electronics products. The government hopes that the restrictions will encourage local manufacturers to invest in new production capacity and create jobs.
After the time period is over, import will be possible only on import licencse.
Entities can apply for multiple licences for multiple instances or shipments. Multiple units can also apply for licences. The licences will be valid for one year. The extension was considered after the industry asked for more time to comply with the new regulations.
Reason for the move
The official reassured that laptop manufacturers in India have sufficient production capabilities, and as a result, there won’t be any shortage of laptops during the festive buying season or the commencement of college sessions. He also mentioned that this restriction on imports is unlikely to affect prices. The decision to limit imports was made with a focus on national security and safeguarding Indian users’ data and privacy against growing threats. The ultimate goal is to bolster India’s self-sufficiency in laptop manufacturing through the production-linked incentive (PLI) scheme.
In May, the government launched an updated PLI scheme worth ₹17,000 crore for the IT hardware industry, with the aim of enticing laptop, tablet, and other hardware manufacturers to set up operations in India. The initial version of the scheme had a smaller allocation and did not succeed as expected. Currently, India imports approximately $8 billion worth of laptops and tablets annually, a figure the government is eager to decrease to reduce the overall electronics imports, which reached $70 billion in 2022.
