Laptop prices may increase as Modi government reviews import rules
India's laptop import policy is currently under review by the Ministry of Commerce and the Ministry of Electronics and Information Technology (MeitY). The review is driven by a need to balance concerns around price pressures on consumers, and the aim of strengthening domestic manufacturing. To note, the existing 'import management system' policy requires IT hardware companies to register and disclose data related to their imports, including countries of origin.
Future of import policy hangs in balance
The future of India's laptop import policy remains uncertain, as the government deliberates on reverting to the original licensing regime. While MeitY is still weighing the necessity of a return to a licensing system, an anonymous Commerce Ministry official has expressed certainty about its need to Moneycontrol.
Ministries await decision on laptop import policy
Currently, MeitY is analyzing import data to inform its recommendation to the Commerce Ministry on whether a licensing system is necessary. Both ministries have yet to comment on this development. In August 2023, the Centre announced restrictions on free imports of laptops, tablets, and personal computers in an effort to provide more opportunities for Indian manufacturers. This move was tipped to impact global tech giants like Dell, Acer, Samsung, Panasonic, Apple, Lenovo, and HP.
Import restrictions and their impact on tech giants
However, following industry backlash, these plans were rolled back in September 2023 and free imports were extended until September 2024. Instead of a licensing regime, an 'import management system' was introduced requiring IT hardware companies to register and disclose import data. India's inbound shipments of electronic goods including tablets, laptops, and personal computers accounted for almost $21 billion between April and June 2024, marking an 11% increase year-on-year.
Commerce Ministry awaits MeitY's decision on import curbs
The Commerce Ministry believes that past import restrictions have benefitted certain sectors and boosted India's manufacturing capacity. The Ministry is awaiting MeitY's decision on the next steps regarding import curbs on laptops and related products. The US has also expressed concerns over India's decision to increase scrutiny over imports of electronic products. US Trade Representative Ambassador Katherine Tai, urged India to ensure that current policies do not restrict trade.
