Indian Government Restricts Import of Laptops, Tablets and Computers, Industry Reacts

The Indian government has restricted the import of laptops, tablets, and computers with immediate effect, seemingly to promote PLI 2.0 for IT hardware. The announcement was made through an official notice from the Directorate General of Foreign Trade. According to the notice, the import of Laptops, Tablets, All-in-one Personal Computers, and Ultra small form factor Computers, Servers under HSN 8471 is now 'restricted' with immediate effect. However, an exemption from import licensing is granted for one such item, except for Servers, per consignment.

Furthermore, the notice states that import licensing provides an exemption for up to 20 items per consignment when they are intended for R&D, Testing, Benchmarking, Evaluation, Repair and return, or Product Development purposes. The exemption also applies to the re-import of items repaired abroad. Additionally, if the item serves as an essential component of a Capital Good, it qualifies for an exemption.

Moreover, the notice specifies that the import of Laptops, Tablets, All-in-one Personal Computers, and Ultra small form factor Computers and Servers falling under HSN 8741 can now only be conducted with a valid Licence for Restricted Imports.

Industry reactions to Indian Government restricting import of laptops, tablets and computers

Early industry reactions seem to be appreciative of this move by the Indian Government. “We believe the government’s decision to curb the laptop, tablet, and computer imports is progressive and has the potential to boost indigenous electronics manufacturing in the country and also help in achieving Make-in-India vision. We currently hold the PLI for IT Hardware and are manufacturing laptops for notable brands. With this move, we expect further expansion of our capacity to manufacture these devices,” said A Gururaj, managing director, Optiemus Electronics.

Arjun Bajaj, director - Videotex, said: “"We are grateful for the government's support in fostering an environment for domestic manufacturing in India by putting an import ban on laptops, tablets, PCs and other HSN 8741 products. The focus now is on the potential benefits such support can bring to research and development (R&D) and the manufacturing of electronics products in the country. This highly encourages building the whole manufacturing ecosystem in the country. By reducing the reliance on imports, the country can achieve self-reliance or "Atma Nirbhar" in manufacturing electronics products. Furthermore, supporting the "Made in India" initiative by the government, the emphasis can be placed on promoting locally manufactured electronics, which can boost the economy, create jobs, and reduce dependence on foreign imports. Overall, it shall build a comprehensive approach to strengthen the electronics manufacturing ecosystem in India, ensuring a self-sufficient and thriving industry.”

He further went on to add that apart from this ban, the government should also focus on localization of display fab and semiconductor fab within India. “Open cells and PCB play a significant role in the total cost of electronics products, and currently, India heavily depends on imports from China for these components. By investing in domestic production of these essential components, the country can lower production costs, leading to more affordable electronic products accessible to all Indians and boost exports from the country,” stated Bajaj.