Starting in November, companies from the US, China, and the rest of the world will need licenses to import laptops and PCs into India.
The ban is partof Narendra Modi’s “Make in India” strategy.
A group of US tech giants protested the abrupt way in which India introduced the import restrictions, impacting electronics from small tablets to all-in-one PCs.
Indian Prime Minister Narendra Modi’s tenure has been characterized by a dramatic ramping up of trade protectionism. Over the course of roughly a decade, between 2010 and 2021, there have been frequent and broad tariff hikes and discriminatory regulations against foreign-owned companies by Modi’s administration. This month, the government went as far as to ban the import of laptops, personal computers, and tablets.
The so-called trade policy is being promoted under the mantle of “self-reliance” and Modi’s “Make in India” strategy. The latest trade-busting measure, announced on August 3, would require Indian companies to get a license before importing personal computers, laptops, or even tablets.
“Import of laptops, tablets, all-in-one personal computers, and ultra-small form factor computers and servers falling under HSN 8741 shall be ‘restricted,’ and their import would be allowed against a valid license for restricted imports,” stated the notice from the directorate general of foreign trade.
The government of India is convinced that reducing imports is necessary both for its security and as a way of creating manufacturing jobs. It also especially hopes to reduce imports from China. In recent years, India has witnessed a notable surge in imports of electronic goods, particularly laptops and computers. From April to June this year, the import of electronic goods escalated to US$6.96 billion, a substantial rise from US$4.73 billion in the corresponding period of the previous year.
These electronic goods now constitute four to seven percent of the overall imports during this period. The central government wants IT hardware manufacturers in India to achieve localization of approximately 80 percent in value addition for the production of computers and other IT hardware within the coming years.
So far, a broad coalition of US tech giants from Apple Inc. to Intel Corp. has protested the way in which India introduced tech import restrictions this month, saying the surprise move will damage the country’s ambitions to become a global manufacturing hub and harm consumers.
A report by Bloomberg indicated that eight American trade groups, comprising the most prominent players in technology and manufacturing, had sent a letter to the US officials last week asking the Department of Commerce, the US Trade Representative, and the government more broadly to urge India to reconsider its latest policy.
The ban is partof Narendra Modi’s “Make in India” strategy.
A group of US tech giants protested the abrupt way in which India introduced the import restrictions, impacting electronics from small tablets to all-in-one PCs.
Indian Prime Minister Narendra Modi’s tenure has been characterized by a dramatic ramping up of trade protectionism. Over the course of roughly a decade, between 2010 and 2021, there have been frequent and broad tariff hikes and discriminatory regulations against foreign-owned companies by Modi’s administration. This month, the government went as far as to ban the import of laptops, personal computers, and tablets.
The so-called trade policy is being promoted under the mantle of “self-reliance” and Modi’s “Make in India” strategy. The latest trade-busting measure, announced on August 3, would require Indian companies to get a license before importing personal computers, laptops, or even tablets.
“Import of laptops, tablets, all-in-one personal computers, and ultra-small form factor computers and servers falling under HSN 8741 shall be ‘restricted,’ and their import would be allowed against a valid license for restricted imports,” stated the notice from the directorate general of foreign trade.
The government of India is convinced that reducing imports is necessary both for its security and as a way of creating manufacturing jobs. It also especially hopes to reduce imports from China. In recent years, India has witnessed a notable surge in imports of electronic goods, particularly laptops and computers. From April to June this year, the import of electronic goods escalated to US$6.96 billion, a substantial rise from US$4.73 billion in the corresponding period of the previous year.
These electronic goods now constitute four to seven percent of the overall imports during this period. The central government wants IT hardware manufacturers in India to achieve localization of approximately 80 percent in value addition for the production of computers and other IT hardware within the coming years.
So far, a broad coalition of US tech giants from Apple Inc. to Intel Corp. has protested the way in which India introduced tech import restrictions this month, saying the surprise move will damage the country’s ambitions to become a global manufacturing hub and harm consumers.
A report by Bloomberg indicated that eight American trade groups, comprising the most prominent players in technology and manufacturing, had sent a letter to the US officials last week asking the Department of Commerce, the US Trade Representative, and the government more broadly to urge India to reconsider its latest policy.
