The Indian government has imposed immediate import restrictions on laptops, tablets, and specific types of computers in a bid to enhance national security and promote domestic manufacturing. The move will also limit inbound shipments of these products from countries like China and Korea.
Importers will now be required to secure permission or a licence from the government for their inbound shipments. A senior government official cited the increase in internet penetration in the country and the potential security risks posed by certain hardware as primary reasons for the restrictions.
However, the Directorate General of Foreign Trade (DGFT) announced that some exceptions to these restrictions would be in place. Imports of certain items for R&D, testing, benchmarking and evaluation, repair and return, and product development purposes are exempted. Additionally, imports under baggage rules will also be exempted, and the rule will not apply to one laptop, tablet, personal computer, or ultra-small form factor computer purchased from e-commerce portals, through post or courier.
The government maintains that the move, compliant with World Trade Organisation (WTO) rules, aims to regulate imports rather than banning them. An importer can apply for a licence starting from August 4, provided they are a regular importer.
Industry experts have expressed concern that the new restrictions may lead to a price increase for these instruments, a claim which the government official refuted.
According to the Global Trade Research Initiative (GTRI), India is significantly dependent on China for electronic items, machinery, and organic chemicals, including mobile phones, laptops, components, solar cell modules, and ICs. The government has previously rolled out production-linked incentive schemes and increased customs duties on several electronic components to stimulate domestic manufacturing.
India imports approximately USD 7-8 billion worth of these goods every year.
In the fiscal year 2022-23, India imported personal computers, including laptops, worth USD 5.33 billion, compared to USD 7.37 billion in 2021-22.
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