Laptop import monitoring system extended for a year as domestic production yet to ramp up

The fresh extension follows an earlier one from September, when the existing approval system for the import of certain IT hardware products—including laptops and tablets—was prolonged by three months, following restrictions first imposed on August 3, 2023. These restrictions cover items such as laptops, tablets, all-in-one personal computers, ultra-small form factor computers, and servers.

A senior government official told The Indian Express that the year-long extension to require only authorisation for importing IT hardware was due to domestic production not yet reaching a satisfactory level. In 2023, the IT Ministry notified a revamped version of the Production Linked Incentive (PLI) scheme for IT hardware, aimed at encouraging manufacturers to increase local production through subsidies.

“Right now, we cannot introduce strict norms for laptop imports because companies selected under the 2.0 IT hardware PLI scheme have not started production at a significant scale. Some of their plants will commence production in the next fiscal year, so we need to give them time until then. Once enough laptops are being manufactured locally, there will be less need to rely on imports,” the official said.

As many as 27 companies, including Dell, HP, Foxconn, and Lenovo, have been approved by the government for incentives under the IT hardware PLI scheme 2.0.

A second government official said that the extension is to ensure that there are “no disruptions” in the market. The government is still considering imposing a credit system to the import management system, linked to a manufacturer’s domestic production value, but that will be implemented in “due course of time”.

“This year there was some domestic production of IT hardware, but it has not yet met thresholds. Next year the companies will meet thresholds and their production targets,” the second official said.

The original move to introduce a licensing regime for the import of laptops and personal computers was aimed at curbing imports from China, which dominates the supply of these devices to India. However, The Indian Express had previously reported that China’s share of overall laptop imports surged after the government temporarily rolled back the policy last October, following significant pushback from the industry.

India imported personal computers, including laptops, worth $5.33 billion in 2022–23, compared to $7.37 billion in 2021–22.

Think tank GTRI has stated that India’s repeated delays in implementing laptop import restrictions—likely influenced by US concerns—need to end. According to GTRI, China controls 81 per cent of the global PC and laptop market, and any disruption there could have global repercussions.