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The Ministry of Commerce and Industry on Tuesday said that companies will have until the end of the year to freely import laptops and personal computers, but will have to seek fresh approvals from January 1. Existing permits issued till September 30 will stay valid till the end of the year. The ministry further informed that “detailed” guidelines for approvals will be released shortly.
This comes after India had announced the new system for imports of laptops, tablets, personal computers and servers last year after it rolled back an earlier plan to impose a licensing regime following criticism from industry over shortages and United States Trade Representative (USTR) during the G20 meeting in India.
“Importers would be required to apply for fresh authorisations for the period from January 1, 2025 subject to detailed guidance to be provided shortly,” an official notification issued on Tuesday.
Meanwhile, the government sources indicated that there could be a further extension of the regime by at least another quarter after the current December deadline.
The government is currently in a wait and watch mode as companies move to start production under a revised production linked incentive (PLI) scheme for IT hardware, and could impose restrictions once domestic manufacturing in the sector reaches a critical mass.
The original move to introduce a licensing regime for import of laptops and personal computers last year was aimed squarely at discouraging imports from China, which commands a lion’s share in the supply of these devices to India. However, The Indian Express had earlier reported that China’s share in overall laptop imports surged since the government rolled back the policy temporarily last October, amid severe pushback from the industry.
“India’s repeated delay in implementing laptop import restrictions, likely influenced by US concerns, needs to end. It’s time for India to enforce these measures and boost local production. Such restrictions would push American tech giants like Apple, Dell, and HP, which manufacture in China, to set up operations in India,” Ajay Srivastava, former Indian Trade Service officer and head of economic think tank Global Trade Research Initiative (GTRI) said.
The US’s stance on China is inconsistent, Srivastava said, adding that it imposes tariffs and restrictions on Chinese goods like solar cells and electric vehicles to protect its own interests but resists when other nations take similar steps that might affect American companies. “India has a strong case for building its own laptop manufacturing capabilities. China controls 81 per cent of the global PC and laptop market, and any disruption there could have global repercussions,” he said.
As per the commitment made under the Information Technology Agreement in 1997 at the World Trade Organization, India cannot increase the duty on laptops, PCs and similar IT products, which currently come into the country at zero duty. This is one of the reasons why the import management system was put in place instead of a duty hike to boost domestic manufacturing under the production linked incentive (PLI) scheme.
China is the largest exporter of PCs and laptops in the world, with a dominant share of 81 per cent. In 2022, China’s global exports of these items stood at $163 billion. Top firms such as Lenovo, Apple, Dell and HP make most of their laptops and PCs in China.
