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Government Considers Import Restrictions on Laptops, PCs, and Tablets: Key Deadlines and Details Revealed

India intends to implement import restrictions on laptops, tablets, and PCs after January to promote domestic manufacturing among companies such as Apple.

Import of Tech Products

Government Considers Import Restrictions on Laptops, PCs, and Tablets: Key Deadlines and Details Revealed
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19 Oct 2024 3:47 PM IST

India is poised to restrict imports of laptops, tablets, and personal computers after January, according to two government sources familiar with the situation. This initiative aims to encourage companies like Apple to enhance their domestic manufacturing capabilities.

If implemented, this plan could disrupt an industry valued at $8 billion to $10 billion and significantly alter the landscape of India's IT hardware market, which heavily depends on imports.

A similar initiative to restrict imports was abandoned last year due to backlash from companies and lobbying efforts from the United States.

India has been monitoring imports under a system set to expire this year and has instructed firms to seek new approvals for imports in the upcoming year. The government believes it has provided the industry with sufficient time to adapt, according to sources who requested anonymity due to the confidential nature of the discussions.

One source indicated that New Delhi will begin consultations with all stakeholders starting next week and could postpone the implementation of the import restrictions by a few months if necessary. India's Ministry of Electronics and Information Technology (MeitY) is developing a new import authorisation system that will require companies to obtain prior approvals for their imports, according to one of the sources.

The IT hardware market in India, including laptops, is valued at nearly $20 billion, with approximately $5 billion attributed to domestic production. Major players such as HP, Dell, Apple, Lenovo, and Samsung dominate the industry, while imports—primarily from China—satisfy two-thirds of the Indian demand, according to consultancy Mordor Intelligence.

Import limits in India should be tailored according to the country’s domestic production capabilities, according to an industry source involved in government consultations. The government's key production incentive scheme for IT hardware has attracted participation from global companies such as Acer, Dell, HP, and Lenovo. Most approved participants are poised to commence manufacturing, as noted by India’s electronics minister last year.

To support this initiative, India has allocated federal subsidies totalling nearly $2.01 billion to promote local production. In response to these dynamics, the government is contemplating the establishment of minimum quality standards under its 'compulsory registration order' for laptops, notebooks, and tablets.

Currently, laptop importers can bring in unlimited devices after completing an automated online registration process. The market is primarily dominated by major players such as HP, Dell, Apple, Lenovo, and Samsung, with imports currently fulfilling two-thirds of the Indian demand.

India has long stressed the importance of sourcing electronics and communication devices from "trusted sources" in light of rising concerns about cyberattacks and data breaches. In 2022, Prime Minister Narendra Modi emphasised the need for India to reduce its dependency on foreign nations for communication technologies, including servers.

Starting in April 2025, India will mandate testing of "essential security parameters" for all CCTV cameras.

laptop import restrictions IT hardware market Indian government curbs on laptop import Apple 
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