India plans to impose import curbs on laptops to boost local production: Report

India is expected to limit imports of laptops, tablets and personal computers after January, a move to push companies to increase domestic manufacturing, Reuters reported citing sources. 

A similar plan to restrict imports was withdrawn last year following backlash from companies and lobbying from the United States. India has since monitored imports under a system set to expire this year and has asked firms to seek fresh approvals for imports next year. 

The government feels it has given the industry enough time to adapt, said the sources, the report added. This plan, if implemented, could disrupt an industry worth $8-$10 billion and reshape the dynamics of the IT hardware market in India, which is heavily reliant on imports. 

India launched an “import management system” in November 2023, which required companies to register with the government the quantity and value of their laptop and tablet imports. 

India announced the new system for laptops, tablets, personal computers and servers after it rolled back an earlier plan to impose a licensing regime, requiring the likes of Apple, Dell and HP to obtain licences for shipments of imported laptops and tablets. 

The laptop licensing policy, seen as a trade restriction, was reversed after criticism from industry and Washington. 

The policy was part of Prime Minister Narendra Modi'’s efforts to boost local manufacturing and ensure a trusted supply chain, as India remains reliant on imports for such electronics. 

On November 1, 2023, the government cleared 110 of the total 111 applications, including those of Apple, Dell and Lenovo, which sought permission for imports of these IT hardware products worth nearly $10 billion, on the first day of implementation of the new system.

India’s laptop and personal computer imports between April to July stood at $1.7 billion, according to the government data. 

As per the commitment made under the Information Technology Agreement in 1997 at the World Trade Organization, India cannot increase the duty on laptops, PCs and similar IT products, which currently come into the country at zero duty. This is one of the reasons why the import management system was put in place instead of a duty hike to boost domestic manufacturing under the production linked incentive (PLI) scheme.