In a move that could significantly impact the Indian tech landscape, the government is reportedly planning to reintroduce restrictions on the import of laptops, tablets, and personal computers. This strategic decision, aimed at bolstering domestic manufacturing, could see tech giants like Apple and Samsung further increase their production within the country.
The new import limits, which could come into effect after January 2025, are part of India’s ongoing push to reduce its reliance on foreign technology and promote local production. A similar restriction was proposed last year but faced strong opposition from companies and lobbying efforts from the United States. The government ultimately withdrew the proposal and instead implemented a monitoring system, requiring companies to seek fresh import approvals for 2024. This system is set to expire this year, leading to the renewed push for stricter import controls.
According to government sources, the belief is that the industry has had sufficient time to adapt to the changing landscape. The Ministry of Electronics and Information Technology (MeitY) is currently developing an import authorization system that will require companies to obtain prior approvals for all incoming devices. This contrasts with the current system where importers can freely bring in laptops after registering online. The new rules aim to replace this automated system with a more tightly controlled process.
While consultations with industry players are scheduled to begin next week, officials have hinted that the implementation could be delayed by a few months if necessary. The electronics ministry has not responded to requests for comment, but the trade ministry has stated that a final decision will be made following discussions with key stakeholders.
The move is significant for India’s IT hardware market, which is currently estimated at around $20 billion and heavily reliant on imports. Brands such as HP, Dell, Apple, Lenovo, and Samsung dominate the market, with two-thirds of the demand being met through imports, primarily from China. Domestic production currently accounts for only $5 billion, although recent efforts to boost local manufacturing have shown some positive signs.
In addition to import restrictions, the government is also exploring the implementation of new quality standards under a “compulsory registration order” to prevent the import of low-quality devices. However, officials have acknowledged that global trade treaties limit India’s ability to impose tariffs on these products, making import restrictions one of the few viable policy tools.
India has been actively promoting domestic production through various initiatives, including the production-linked incentive (PLI) scheme. This scheme, offering federal subsidies worth $2.01 billion, has already attracted companies like Acer, Dell, HP, and Lenovo, who are committed to establishing local manufacturing operations. Contract manufacturers like Dixon Technologies are poised to benefit from this shift, with Dixon already partnering with HP to produce laptops and aiming to supply 15 percent of India’s total demand.
Data from Counterpoint Research highlights a 4 percent decline in laptop imports during the first five months of 2024, as companies like Lenovo and Acer ramp up local assembly of entry-level models. This shift in import trends reflects the growing momentum of domestic production efforts. The reintroduction of import restrictions, if implemented, will further accelerate this trend, shaping the future of India’s tech industry and impacting global technology players.
