(MENAFN- KNN India)
New Delhi, Oct 19 (KNN)
In a significant policy shift, India plans to limit the import of laptops, tablets, and personal computers starting January 2025, according to two government sources.
The move, intended to bolster domestic manufacturing, could disrupt an industry valued at USD 8-10 billion and reconfigure the IT hardware market, which currently relies heavily on imports, especially from China.
This import restriction strategy aims to push global companies like Apple, HP, and Lenovo to increase local production. However, it mirrors a controversial attempt in 2022, which the government withdrew after backlash from tech giants and lobbying by the United States.
Since then, India has monitored imports through a temporary system that expires this year. Companies will now be required to secure new approvals for 2025 imports under a planned import authorization framework.
“We have given the industry sufficient time to adjust,” one official stated, noting that consultations with stakeholders will begin next week. The government may defer the implementation by a few months if needed, to allow for a smoother transition.
The Ministry of Electronics and Information Technology (MeitY) is expected to introduce minimum quality standards under a 'compulsory registration order' to prevent the influx of substandard devices.
Since international treaties limit tariff increases on these products, the government has few policy tools left to control imports, another official explained.
Currently, two-thirds of India's IT hardware demand is met through imports, with annual market estimates nearing USD 20 billion. Only USD 5 billion worth of this demand is domestically produced, according to Mordor Intelligence.
Contract manufacturers such as Dixon Technologies, which has partnerships with firms like HP, stand to benefit significantly from the shift. Dixon aims to supply 15% of India's total laptop demand once restrictions take effect.
The government's production-linked incentive (PLI) scheme for IT hardware has already attracted major players like Dell, Acer, and Lenovo.
With federal subsidies amounting to $2.01 billion, these companies are gearing up to ramp up local production, aligning with India's push to reduce dependence on foreign electronics and safeguard national cybersecurity interests.
According to Counterpoint Research, imports of fully assembled laptops fell by 4 per cent during the first five months of 2024, with firms increasingly shifting entry-level product assembly to India.
The broader initiative reflects India's long-standing ambition to ensure“trusted sources” for technology and communication devices, amid growing concerns over data security.
India's federal trade ministry confirmed that a final decision on the new import system will be made after consultations with MeitY and other stakeholders.
(KNN Bureau)
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