Government limits laptop and computer imports to promote domestic production

 Government limits laptop and computer imports to promote domestic production

According to the announcement, their import would be permitted in exchange for a current licence for restricted imports. 

According to a government notification released on Thursday, India has barred the importation of laptops, tablets, and personal computers with immediate effect in an effort to promote domestic production.

 

The notification states that "their import might involve permitted without an legitimate licence for restricted imports."

Imports of electronics, which include laptops, tablets, and personal computers, were $19.7 billion in April–June, a 6.25–percent increase over the same period last year. Between 7% and 10% of the nation's total goods imports are electronic products. The initiative aims to support Indian manufacturing.

 It's a push, not a nudge, according to Ali Akhtar Jafri, a former general manager of the association for the electronics sector, MAIT.

India has been attempting to promote domestic manufacturing by providing incentives tied to output in more than two dozen industries, including electronics.

 

The deadline for businesses to apply for its $2 billion manufacturing incentive programme has been extended in an effort to draw significant investments in the production of IT gear, which includes items like laptops, tablets, personal computers, and servers.

The incentive programme is crucial to India's plans to dominate the global electronics supply chain, with the nation aiming for $300 billion in annual manufacturing by 2026.

A significant majority of the laptops sold in the Indian market are imported from nations like China by Dell, Acer, Samsung, LG Electronics, Apple Inc., Lenovo, and HP Inc.

On hearing the news, shares of Indian electrical manufacturer Dixon Technologies increased by more than 5%.

 

According to economist Madhavi Arora of Emkay Global, the goal appears to be the "import substitution of specific goods that are heavily imported."

According to government statistics, nearly half of the country's yearly imports of laptops, tablets, and personal computers—which total approximately 1.5%—come from China.

 

In the past, India has imposed hefty tariffs on goods like mobile phones to boost indigenous production.

 

According to predictions from industry association India Cellular and Technology Association, the country manufactured $38 billion worth of mobile phones in 2016, but just $4 billion worth of laptops and tablets.