(MENAFN- KNN India) New Delhi, Oct 17 (KNN) The All India Notebook Manufacturers Association (AINMA) has cautioned that over 1,500 micro, small and medium enterprises (MSMEs) engaged in notebook production face the threat of closure following a potential surge in imports of finished notebooks from ASEAN countries.

In representations to the Finance Ministry and the Ministry of Commerce and Industry, the association said that large importers plan to bring in finished notebooks at zero tax rates under the current GST regime, creating an inverted duty structure that disadvantages domestic producers, according to ET.

According to AINMA, the duty-free imports could lead to price undercutting, making locally manufactured notebooks uncompetitive.

The association warned that the situation could adversely affect employment in the sector and undermine the objectives of the government's 'Make in India' initiative.

“Despite a widely appreciated policy intent, the ground reality is stark,” said S. Saravanakumar, Working Committee Member, AINMA.“The potential rise in imports of finished notebooks at zero GST will badly hurt domestic manufacturers, value chains, and livelihoods.”

The association has urged the government to take immediate corrective measures to address the inverted duty structure and ensure a level playing field for Indian notebook manufacturers.

“We strongly urge the government to consider instituting an urgent corrective mechanism to avert the looming danger from imports, while restoring a level playing field for domestic players,” Saravanakumar added.

“Such prompt actions would help save the Indian notebook manufacturing ecosystem from existential threats.”

AINMA emphasised that without policy intervention, the influx of duty-free notebooks could lead to widespread disruption across the domestic value chain, jeopardising the survival of small-scale manufacturers and thousands of dependent workers.

(KNN Bureau)

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