 "India plans to curb laptop imports again, wants players like Apple to increase domestic production")
India is again planning to introduce restrictions on the import of laptops, tablets, and personal computers, in a bid to push tech giants like Apple & Samsung to increase manufacturing within the country.
Two government sources revealed that the new import limits could take effect after January 2025, as part of India’s ongoing effort to reduce reliance on foreign technology and encourage local production, as reported by Reuters.
A similar import restriction was proposed last year but was withdrawn following backlash from companies and lobbying by the United States. In response, India opted for a monitoring system that will expire this year, requiring firms to seek fresh import approvals for 2025. According to the sources, the government believes the industry has now had sufficient time to adapt.
India’s Ministry of Electronics and Information Technology (MeitY) is working on an import authorisation system that will require companies to get prior approvals for all incoming devices. Currently, importers can freely bring in laptops after registering online, but the new rules aim to replace this automated system with tighter controls.
While consultations with industry players are set to begin next week, officials hinted that implementation could be delayed by a few months if needed. The electronics ministry did not respond to requests for comment, but the trade ministry said a final decision would be made after discussions with key stakeholders.
The IT hardware market in India, estimated at around $20 billion, relies heavily on imports, with brands like HP, Dell, Apple, Lenovo, and Samsung dominating the market. Two-thirds of the demand is currently met by imports, primarily from China. Domestic production accounts for only $5 billion, though recent efforts to boost local manufacturing have shown some promise.
The government is also exploring new quality standards under a “compulsory registration order” to prevent the import of low-quality devices. Officials stated that global trade treaties limit India’s ability to impose tariffs on these products, leaving import restrictions as one of the few viable policy tools.
Impact Shorts
More ShortsIndia has been actively promoting domestic production through federal subsidies worth $2.01 billion under its production-linked incentive (PLI) scheme. Companies like Acer, Dell, HP, and Lenovo have already signed up for the programme, and many are prepared to begin local manufacturing.
Contract manufacturers like Dixon Technologies stand to benefit from the shift. Dixon has already partnered with HP to produce laptops and aims to supply 15 per cent of India’s total demand. Data from Counterpoint Research shows a 4 per cent decline in laptop imports during the first five months of 2024, with companies such as Lenovo and Acer ramping up local assembly of entry-level models.
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