The Government Restricts Laptop, Tablet, and PC Imports with Immediate Effect: To Encourage Domestic Manufacturing in India

According to a government notification issued on Thursday, the government has limited imports of laptops, tablets, and personal computers with immediate effect to encourage domestic manufacture.

"Their import would be allowed against a valid licence for restricted imports," according to the notification. Electronics imports, including laptops, tablets, and personal computers, totaled $19.7 billion (approximately Rs. 1,62,960 crore) in April-June, a 6.25 percent increase yearly. Electronics imports account for 7% to 10% of overall goods imports in the country.

The government has been attempting to encourage domestic manufacture

"The spirit of the move is to shift manufacturing to India." It's a push, not a nudge," said Ali Akhtar Jafri, former general director of the electronics industry association MAIT. The government has been attempting to encourage domestic manufacture by providing production-related incentives in over two dozen industries, including electronics. It has extended the deadline for firms to apply for its $2 billion (about Rs. 16,550 crores) manufacturing incentive plan to entice large-scale investments in IT hardware production, which includes laptops, tablets, personal computers, and servers.

The incentive plan is critical to India's goal

The incentive plan is critical to India's goal to become a global electronics supply chain powerhouse, aiming for an annual output of $300 billion (approximately Rs. 24,81,400 crore) by 2026. Dell, Acer, Samsung, LG Electronics, Apple, Lenovo, and HP are among the major businesses offering laptops in the Indian market, with a significant share imported from China. Dixon Technologies, an Indian electrical manufacturer, saw its stock rise more than 5% in response to the news.

The government has previously imposed high tariffs on items such as mobile phones to stimulate local output

According to Madhavi Arora, an economist at Emkay Global, the intention appears to be "import substitution of certain goods that are heavily imported." According to government figures, laptops, tablets, and personal computers account for around 1.5 percent of total yearly imports, with about half coming from China. The government has previously imposed high tariffs on items such as mobile phones to stimulate local output.

According to industry group India Cellular and Electronics Association estimates, the country produced $38 billion (approximately Rs. 3,14,350 crore) worth of mobile phones last year. Still, domestic laptop and tablet manufacturing was just $4 billion (about Rs. 33,100 crores).