In a significant move aimed at bolstering local manufacturing, India implemented immediate restrictions on the import of laptops, tablets, and personal computers on Thursday, August 3.
According to a notification issued by the Ministry of Commerce, the import of laptops, tablets, all-in-one personal computers, ultra-small form factor computers, and servers falling under HSN 8741 will now be “restricted.” Import of these items will only be allowed against a valid license for restricted imports.
However, imports under baggage rules are still permitted. This means that individuals can bring in one laptop, tablet, all-in-one personal computer, or ultra-small form factor computer, including those purchased from online portals through post or courier, without requiring an import license. However, duties will have to be paid on such items, which were previously duty-free.
The notification also mentions that 20 such items per consignment (laptops, tablets, and PCs) will be exempted from import licensing if they are intended for research and development, testing, benchmarking, evaluation, repair and re-export, and product development purposes. However, these exemptions apply only to items not intended for sale. Once the intended purpose of the import is fulfilled, these items must be destroyed or re-exported.
The move is seen as a strong push towards the government’s “Make in India” program, designed to capitalize on the country’s vast consumer market to encourage manufacturers to produce goods within India’s borders. This decision aims at import substitution for certain heavily imported goods, as experts suggest.
Previously, India had relied on high import duties to discourage imports and promote local manufacturing. However, the country’s production in the electronics sector had not fully realized its potential, with mobile phones worth $38 billion produced in 2022 compared to a meager $4 billion for laptops and tablets.
To further bolster domestic production, India is offering production-linked incentives across various sectors, including electronics. The government has also extended the application deadline for its $2 billion manufacturing incentive program, seeking significant investments in IT hardware manufacturing, which includes laptops, tablets, personal computers, and servers.
These incentive programs play a crucial role in India’s aspiration to establish itself as a prominent player in the global electronics supply chain, with a target of achieving a yearly production value of $300 billion by 2026.
Post Your Comments