 "GoI to review laptop imports and manufacturing in September, check brands' efforts for making in India")
The Government of India (GoI) is planning to conduct a comprehensive review of the laptop and other digital device import management system around September, aiming to evaluate the readiness of electronics manufacturers to establish or expand their manufacturing operations within the country, according to sources familiar with the matter as reported by the Economic Times.
During this review, the government is expected to evaluate importers based on various parameters. These parameters may include the quantity of laptops imported since October 2023, the country of origin of these devices and their components, and whether these components are sourced from trusted suppliers.
A senior government official highlighted that the objective is also to assess whether these companies have taken any steps towards establishing manufacturing units in India. Depending on the progress made by individual companies, the government may consider relaxing certain criteria for the import of laptops, tablets, and other IT hardware.
The official emphasized that a significant challenge for companies lies in setting up printed circuit board (PCB) manufacturing facilities in India, along with surface mount technology (SMT) lines. Once these facilities are established, the percentage of domestic value addition to devices is expected to increase significantly.
While acknowledging the time required to set up or expand manufacturing units, the official stressed the importance of companies demonstrating willingness to align with India’s needs and requirements.
The import management system for laptops, tablets, and certain other categories of IT hardware was implemented in October last year. In August, the government placed laptops, tablets, all-in-one PCs, ultra-small factor computers, and servers in the restricted imports category, necessitating importers to obtain licenses for these products.
Impact Shorts
View AllFollowing discussions between electronics company executives and senior officials from the IT ministry and the Directorate General of Foreign Trade, the government extended the deadline until October 31.
Reportedly, major companies such as Apple, Dell, HP, and Acer requested an extension of nine months to a year for obtaining the required licenses. The government assured these companies that the import licensing norms were not intended to discourage or ban imports but to minimize them while promoting exports from India by enhancing domestic manufacturing capabilities.
In November 2023, the government approved 110 out of 111 applications, including those from Apple, Dell, and Lenovo, seeking permission for importing IT hardware products worth nearly $10 billion on the first day of implementing the new system.
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