In the bid to bolster local manufacturing, the Indian government has swiftly imposed restrictions on imports of laptops, tablets, and personal computers, as announced in a notice on Thursday.
This move signifies a resolute effort to stimulate domestic production, with the notice stating, “Their import would be allowed against a valid license for restricted imports.”
Recent data revealed electronics imports, encompassing laptops, tablets, and personal computers, reached $19.7 billion from April to June, reflecting a year-on-year increase of 6.25 percent.
Electronics imports contribute between 7 percent to 10 percent of the nation’s total merchandise imports.
The former director general at the electronics industry body MAIT, Ali Akhtar Jafri, characterized this action as more than a mere nudge, saying, “The move’s spirit is to push manufacturing to India. It’s not a nudge, it’s a push.”
This decisive measure is aligned with the government’s overarching strategy to promote local manufacturing.
The production-linked incentive scheme, spanning over two dozen sectors, including electronics, seeks to catalyze significant investments in IT hardware manufacturing.
Underlining India’s ambitious aspirations, the incentive scheme is pivotal in propelling the nation towards its goal of achieving $300 billion in annual electronics production by 2026.
Key players in the Indian laptop market, such as Dell, Acer, Samsung, LG Electronics, Apple, Lenovo, and HP, primarily source a substantial portion of their products from overseas, notably China.
The ramifications of this decision reverberated, with shares of Indian electronic manufacturer Dixon Technologies surging over 5 percent.
This strategic move is also aimed at reducing reliance on imports for specific goods and fostering a robust domestic ecosystem.
As laptops, tablets, and personal computers constitute about 1.5 percent of the nation’s annual imports, with nearly half originating from China, this decision aligns with prior endeavors to bolster local output, as witnessed in the mobile phone sector.
Last year’s results showcase India’s progression in this direction, with mobile phone production reaching $38 billion in contrast to laptops and tablets, which amounted to $4 billion in estimated local production, according to data from the India Cellular and Electronics Association.
