The Indian government has imposed surprise restrictions on the import of laptops, PCs and tablets. The motive behind doing so may be to promote Make in India. Most of the laptops or PCs used in India are manufactured in China. India has come a long way in mobile manufacturing but foreign products still dominate in laptops, tablets.
Import of computers and laptops was banned
The Government of India has today issued a surprise order restricting the import of laptops, tablets and computers from abroad. Companies like HP, Dell, Lenovo, Acer sell laptops and computers in India, most of which are imported from abroad and sold in India. Laptops, tablets and computers imported from abroad are also mostly manufactured in China.
The Ministry of Industry and Commerce said that the import of laptops, tablets and computers can now be allowed only against a valid license. According to the government notification, all laptops and computers purchased from e-commerce websites, received by post or courier will be exempted from the requirement of import license. This product can be imported after paying the applicable duty.
Government’s biggest decision so far
At the time of Covid in the country, most of the people were working from home and children’s education was also provided online. Due to this, the demand for laptops, computers and tablets in the country increased drastically. These tools were not available in the market. Since then, the situation has gradually returned to normal as the government has imposed restrictions on its import.
The government has been trying for a long time to ensure that laptops, tablets and personal computers are manufactured in India and that Made in India products are sold. However, there is a high volume of imported products in the market. Power laptops have been launched in the market recently by Reliance Industries. According to the latest figures in India, the import of laptops and personal computers has decreased by 23 percent. Mobile phone imports declined by 4.1 percent during last year as India started manufacturing mobile phones including Apple. Similarly, imports of integrated circuits and solar cells have also decreased.
Make in India could increase the production of laptops and other PCs, but it is not certain whether it will meet the demand of the industry. India imported laptops, tablets and computers worth $19.7 billion in the April-June period. Its imports have increased by 6.25 percent in the last one year.
IndElectronics accounts for 7 to 10 percent of India’s total merchandise imports. India has tried to inia has tried to increase production at home by providing production-linked incentives covering over two dozen sectors. It has also invited companies to invest two billion dollars in IT hardware manufacturing. India plans to produce $300 billion worth of electronics by 2026.
Taking a major decision on Thursday, the central government has banned the import of laptops, tablets and computers with immediate effect. Ministry of Commerce has issued a notice in this regard. Accordingly, limited import of these restricted items will be permitted only on the basis of valid licences. The Central Government has also banned the import of ultra small form factor computers and servers under HSN 8471. However, restrictions on import under baggage rules will not apply.
The ministry has informed that the import will be allowed only with a condition that the imported goods will be used only for the stated purposes and will not be sold. Further, the condition that the products will be destroyed or re-exported after use is also included. However, import of laptop, tablet, all-in-one personal computer or ultra small form factor computer will be exempted from license subject to conditions. This also includes computers purchased through post or courier from e-commerce portals.
Ali Akhtar Jafri, former director general of electronics industry body Manufacturers Association of Information Technology, said, “The move is aimed at promoting manufacturing in India and is a positive decision. We welcome it.”
Let us tell you that laptops from Samsung, Dell, Acer, Lenovo, LG, Panasonic and Apple Inc are imported from countries like China for sale in India. In this situation, this decision of the government is going to increase the difficulty of these companies and the price of laptops and computers may also increase.
In a major announcement on Thursday, the Government of India issued a notice to immediately ban the import of laptops, tablets and personal computers.
This decision has been taken at a time when the Make in India campaign is going on in the country. The decision will benefit domestic manufacturers and foreign companies that are continuously manufacturing their units in the country, supplying locally and exporting to other countries.
In May, a GTRI report said that imports of electronic items such as laptops, personal computers, integrated circuits and solar cells from China fell in the last financial year.
Shall be subject to payment of duty applicable on importation
It was stated on behalf of the Global Trade Research Initiative that the decline in imports of electronic goods has been observed more in the sectors where the PLI scheme has been introduced. Along with this, the import of solar cells has decreased by 70.9 percent. Imports of laptops, personal computers (PCs) declined by 23.1 percent and mobile phones by 4.1 percent during this period.
Along with this, the right things are made in the country and if the global supply chain cooperates with the local supply chain, the country’s economy will be boosted
According to details received, India has banned the import of laptops, tablets and personal computers with immediate effect in a government directive to promote local manufacturing.
With this, their import will now be allowed against a valid license for restricted importation.
Importantly, electronics imports, which include laptops, tablets and personal computers, were $19.7 billion in April-June, up 6.25% year-on-year.
There is no restriction on purchasing laptops, tablets etc. for personal use and research etc.
But import of laptops, tablets and personal computers is prohibited
In its notification, the DGFT has stated that there is no restriction on laptops, tablets and personal computers on flights under baggage rules. And
The government said that if laptops, tablets and personal computers are imported for research and development, testing, benchmarking and repair, import of up to 20 pieces per consignment will be allowed under licence.
DGFT has issued this notification with the aim of promoting domestic manufacturing under Make India India and Atmanirbhar Bharat.
Conclution
Government of India is providing incentives to increase domestic production in more than 20 sectors,This includes the electronics of the incentives attached to the product.The government has extended the deadline for companies to apply under a $2 billion manufacturing incentive scheme to attract investment in IT hardware manufacturing to boost production of laptops, tablets and personal computers and servers.