India Restricts Laptop, Tablet Imports to Boost Local Manufacturing

India has taken significant steps to boost local manufacturing efforts by imposing restrictions on the import of laptops, tablets, PCs, and servers, TechCrunch is reporting.

The Ministry of Commerce and Industry announced the immediate implementation of this restriction, stating that imports will now require a valid license.

The move aims to encourage domestic production and follows a similar restriction on smart TV imports from three years ago, which successfully bolstered local manufacturing, according to analysts.

The latest restriction applies to laptops, tablets, all-in-one personal computers, ultra small form factor computers, and servers falling under HSN 8741.

However, passengers carrying these devices in their baggage will be exempt from the restriction.

The Indian government has been providing incentives to firms in recent years to promote local production. In May, the government introduced a $2 billion scheme to support businesses manufacturing hardware like laptops, PCs, servers, and edge computing kits.

Pankaj Mohindroo, chairman of the Indian Cellular and Electronics Association, believes this policy announcement is focused on providing secure digital access to the growing number of digital citizens in the country.

Companies like Dell and HP already have manufacturing facilities in India, and the government aims to expand local production further.

India is also striving to become an attractive destination for Apple and its manufacturing partners to establish a global manufacturing hub.

However, currently, the country spends billions of dollars on importing laptops and other hardware. Data shared in the parliament in December indicates that the import value of finished electronic goods in India has increased to $43 billion in 2021–2022 from over $32 billion in 2019–2020.

Nevertheless, the incentives and schemes to boost local production have helped reduce the share of imported finished electronic goods in total imports from 69% in 2019–2020 to 64% in 2021–22.

According to Counterpoint, around 30% to 35% of laptops and 30% of tablets shipped to India during the first half of 2023 were manufactured locally.