India restricts import of laptops, tablets, computers to push local manufacturing

India has imposed immediate restrictions on the import of laptops, tablets, personal computers, and servers, according to an amendment made by the Ministry of Commerce and Industry to the import policy on Thursday. The amended policy states, “Import of laptops, tablets, all-in-one personal computers, and ultra small form factor computers and servers falling under HSN […]

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India has imposed immediate restrictions on the import of laptops, tablets, personal computers, and servers, according to an amendment made by the Ministry of Commerce and Industry to the import policy on Thursday.

The amended policy states, “Import of laptops, tablets, all-in-one personal computers, and ultra small form factor computers and servers falling under HSN 8741 shall be ‘restricted’.”

“Their import would be allowed against a valid licence for restricted imports,” the government notification added.

However, this restriction will not apply to individuals carrying these devices in their personal baggage.

This move aims to promote local manufacturing and boost the country’s hardware production capabilities, although the rationale behind the decision has not been explicitly stated by the government.

Previously, the import of these items was allowed without restrictions. The new policy makes an exemption for the import of one laptop, tablet, all-in-one personal computer, or ultra-small form factor computer through post or courier, including those purchased from e-commerce portals.

Experts interpret this action as a clear indication of India’s intention to enhance domestic manufacturing, especially in the hardware sector.

India’s laptop import restriction ‘a push’ towards local manufacturing, say experts

Ali Akhtar Jafri, former director general at electronics industry body MAIT, commented, “The move’s spirit is to push manufacturing to India. It’s not a nudge, it’s a push.”

India has been actively working to encourage local manufacturing through various incentive programs. The government had previously announced a US$2 billion incentive scheme to promote local production of IT hardware, building on a previous initiative that allocated US$892 million for the same purpose.

Companies like Dell and HP have already established manufacturing facilities in India. The Indian government had publicly aspired to expand local production further and position the country as an attractive destination for global hardware manufacturers, including Apple and its partners.

Counterpoint Research, a Hong Kong-based market research firm, reported that approximately 30–35% of laptops and 30% of tablets shipped to India in the first half of 2023 were manufactured locally. Despite this progress, a significant portion of laptops and tablets continue to be imported.

Key laptop brands like Dell, Acer, Samsung, LG, Panasonic, Apple, Lenovo, and HP are dominant in the Indian market, and a substantial number of their devices are imported from countries such as China. As India’s push for local manufacturing gains momentum, the landscape of the country’s hardware market is likely to undergo further transformations.