India Delays Implementation of Import Restrictions on Laptops, Tablets, and Servers
India has announced a three-month delay in implementing its import restrictions on laptops, tablets, and servers, providing a “transition period” for industry players. The unexpected regulation had caused disruptions and uncertainty in the electronic industry. The Ministry of Commerce and Industry stated in a notification published late Friday that the new import rule would now go into effect on October 31.
The move comes after India’s Deputy IT Minister, Rajeev Chandrasekhar, assured industry players that a transition period would be provided before implementing the amended import policy. The Ministry of Commerce had initially announced on Thursday that the restrictions would go into effect immediately.
The government’s notification stated that import of consumer electronic devices would be permitted against a valid license for restricted products. Passengers carrying these devices in their baggage would also be exempt from the restrictions.
Computer vendors such as Dell, Apple, and Samsung quickly complied with the notification on Thursday, freezing all new imports, according to Bloomberg News.
India has been offering incentives to companies in recent years to promote domestic production. The country’s goal is to spur the manufacturing of hardware like laptops, PCs, servers, and related edge computing kits. In May, the Narendra Modi government announced a $2 billion scheme to further encourage businesses to produce these products locally. Counterpoint, a market research firm based in Hong Kong, estimates that around 30% to 35% of laptops and 30% of tablets shipped to India in the first half of 2023 were domestically manufactured.
The new import restrictions on laptops, tablets, and servers are expected to boost local manufacturing, similar to the impact seen when India imposed a curb on smart TV imports three years ago. Analysts believe that the move will help India become one of the world’s fastest-growing markets for digital products.
In a tweet, Chandrasekhar explained that the purpose of regulating imports is to ensure trusted and verifiable systems, reduce import dependence, and increase domestic manufacturing of these products.
The Ministry of Commerce’s notification has provided further details regarding the implementation of the import restrictions.