India Delays Laptop Import Ban Order by 3 Months After Uproar
Written by Sanjay Kumar
India has decided to postpone the enforcement of import limitations on laptops, tablets, and servers by three months. This move comes after the unexpected regulation caused disruption and uncertainty among electronic industry giants. In a notification released late on Friday (August 4), the Ministry of Commerce and Industry announced the implementation of the new import rule won’t go into effect till October 31.
The delay comes after India’s Deputy IT Minister, Rajeev Chandrasekhar, assured industry players that there would be a “transition period” before implementing the amended import policy.
Q: Why has the @GoI_MeitY finalized new norms for import of IT hardware like Laptops, Servers etc?
Ans: There will be a transition period for this to be put into effect which will be notified soon.
Pls read 👇 https://t.co/u5436EA0IG
— Rajeev Chandrasekhar 🇮🇳 (@Rajeev_GoI) August 4, 2023
Just a day before the delay announcement, India’s Ministry of Commerce had declared that the new restrictions on the import of consumer electronic devices would take immediate effect. According to the notification, the government would allow imports against a valid license for restricted products. Additionally, the restrictions would not apply to passengers carrying these devices in their baggage.
Major computer vendors, such as Dell, Apple, and Samsung, promptly responded to the announcement on Thursday by complying with the new regulation and suspending all new imports, as reported by Bloomberg News.
In recent years, India has been offering incentives to companies to promote domestic production. This initiative has been successful in attracting various smartphone manufacturers, and it is now garnering increasing interest from chipmakers and semiconductor producers.
To further boost domestic production of hardware like laptops, PCs, servers, and related edge computing kits, the Narendra Modi government introduced a $2 billion scheme in May. This program was an upgrade to the previous one, which involved a government expenditure of $892 million. According to market research firm Counterpoint, around 30% to 35% of laptops and 30% of tablets shipped to India in the first half of 2023 were locally manufactured.
The new restriction announcement from Thursday, following a similar curb on smart TV imports a few years ago, is expected to further promote local manufacturing. In fact, the ban on smart TV imports implemented nearly three years ago had a positive impact on local manufacturing, as noted by analysts.
In a tweet, Rajeev Chandrasekhar stated that India aims to ensure trusted hardware and systems, reduce import dependence, and boost domestic manufacturing of laptops and servers. The government’s objective is to regulate imports to ensure the use of trusted and verified systems in the Indian tech ecosystem, whether imported or domestically manufactured.
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