Government defers implementation of restrictions on imports of laptops, PCs and tablets to Nov 1

On Friday, the Directorate General of Foreign Trade (DGFT) declared that its decision to limit the import of certain mobile computing devices falling under HSN 8471 would go into effect on November 1, 2023.

The government has decreed that after this day, no one may import personal computers, laptops, or other electronic devices without a proper import licence.

According to the DGFT's announcement, "Import consignments can be cleared until October 31, 2023, without a licence for restricted imports."

Additional information included that until October 31st, the import of laptops, tablets, all-in-one PCs, and servers will be subject to lenient transitional rules.

The government agency had previously stated its intention to limit the import of portable electronic devices (such as notebooks, tablets, all-in-one PCs, and uSFF desktops and servers) that do not have a special licence. One must have a valid licence for restricted imports in order to bring in these electronic devices.

According to the Ministry of Commerce and Industry, "the said restriction shall not be applicable to Imports under Baggage Rules, as amended from time to time."

Since electronics imports, such as laptops, tablets, and personal computers, accounted for $19.7 billion between April and June 2023, expanding at a rate of nearly 6% yearly, the government recently made the decision to ban imports in an effort to compel Indian manufacturers to fill the gap.

By offering production-linked incentives across more than two dozen industries, including electronics, India has been actively attempting to stimulate domestic manufacturing. It has extended the application deadline for its $2 billion manufacturing incentive plan to entice major investments in IT hardware production, which includes devices such as laptops, tablets, PCs, and servers.

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Key to India's plan to become a global electronics supply chain powerhouse by 2026—when the country aims to produce $300 billion worth of electronics annually—is the incentive programme.

Imports from countries like China make up a significant share of the laptop market in India. Major players in this industry include Dell, Acer, Samsung, LG Electronics, Apple Inc, Lenovo, and HP Inc.

Based on what we know so far, the goal appears to be "import substitution of certain goods that are imported heavily," as stated by Madhavi Arora, an economist at Emkay Global.