The Centre is likely to continue its policy on laptop imports beyond December 31, 2024, but will ensure that consumers are not impacted by the restrictions, sources said. The decision is in line with its objective to promote domestic manufacturing, especially that of electronic goods and consumer durables.
Sources pointed out that the current policy on laptop imports, which was introduced in November 2023, companies have to register the quantity and value of the laptops and tablets that they import. Called the Import Management System, the regime has for now been extended until December 31 this year.
“The objective behind this system has been to ensure that companies are nudged to set up plants in India as well as to keep an eye on imports. There has been absolutely no impact on consumers,” noted a source, pointing out that the system has now stabilised and accepted.
Discussions have, however, been ongoing on whether the system needs to be further tightened and more restrictions in terms of limits on imports of such goods should be imposed sometime in the new year.
The Ministry of Electronics and Information Technology (MeitY) is understood to be working on a new import authorisation system under which companies would have to take prior approval for such imports. Talks have also been going on with key stakeholders to understand their concerns and views.
The government had previously in August 2023 introduced a system of licensing for laptops and tablet imports which did not go down well with industry and had also led to criticism from countries such as the US. Since then, this new system of IMS was introduced.
According to a recent report by economic think tank Global Trade Research Initiative (GTRI), India’s import of desktop, laptops and related products has risen steadily from $ 6.4 billion in FY19 to $ 10.1 billion in FY23. In FY24, these imports stood at $ 9.4 billion with imports from China accounting for nearly half of these at 54.7%.
It pointed out that India has kept import duties on computers, laptops, and similar products at zero due to its commitments under the Information Technology Agreement (ITA-1), which obligates participating countries to maintain zero tariffs on certain technology products. However, it underlined that India must announce a stable policy for this.
"India’s hesitancy to implement strict laptop import restrictions, possibly influenced by concerns from the United States, needs to be resolved decisively. Such restrictions would compel global tech giants like Apple, Dell, and HP, which currently manufacture in China, to consider shifting production to India," said the report by Ajay Srivastava, Founder, GTRI.
Given that China controls 81% of the global PC and laptop market, India is right to reduce its dependence on a single country for its electronics supply chain. By restricting imports and encouraging phased domestic manufacturing, India can swiftly indigenise its electronics industry, it said.