In an immediate move, the Indian government revamped its import policy and announced ban on laptops, tablets imports, all-in-one PCs, and more.
Despite not being banned, these devices can only be imported by those holding a restricted import licence.
The government said in a notification that laptops, tablets, all-in-one computers, and ultra-small form factor computers and servers falling under HSN 8741 would be restricted imports and required a licence for restricted imports.
How does this relate to me?
In the past, companies were not required to license laptops and tablets before bringing them to India. Now, companies will have to license the devices before bringing them into the country.
What will be the impact of the ban on laptops and tablets imports?
It may cost companies money to license laptops and tablets before they can sell them in India, and it may also cause devices to be delayed as a result.
In spite of the sudden announcement, HP, Samsung, and Apple have already stopped importing new laptops and tablets into the country, according to a Bloomberg report.
The short-term impact of the ban on tablets and laptops imports
Although companies are evaluating the impact and are in talks with authorities, the move may adversely affect both the companies and their customers in the short term.
During the festive season, companies sell a large number of devices, and customers plan their purchases to take advantage of bank promotions and discounts.
Its aim is to reduce dependence on imports and promote domestic production. It is estimated that the industry produces 12 million units, so this restriction may cause some short-term supply disruptions, particularly for Apple, HP, and Lenovo. “The industry may also face challenges meeting demand during the festive season, a significant period for sales,” said Tarun Pathak, research director at Counterpoint Research.
There may be a short-term impact on prices and availability due to companies moving manufacturing. However, no price changes have been made.
Imports of laptops and tablets are restricted for the following reasons:
Similar to how it pushed for local smartphone manufacturing, the restrictions were aimed at boosting local manufacturing of laptops and tablets. The government may want big players to push companies to manufacture or assemble their devices in India as a result of the new restrictions.
Around 65% of laptops and PCs imported into India are currently imported, according to Pathak.
In addition to creating more jobs, this move may also curb imports from China, which account for the majority of laptops and tablets imported into India.
Import ban on laptops tablets is hailed by companies
Domestic manufacturers have supported the government’s decision, even though some companies may not see it favorably.
As a result of the government’s decision to curb laptop, tablet, and computer imports, indigenous electronics manufacturing will be boosted in the country and the Make-in-India vision will be achieved, said A. Gururaj, managing director of Optiemus Electronics.
As we hold the PLI for IT Hardware, we are currently manufacturing laptops for notable brands. With this move, we expect to expand our capacity to manufacture these devices.
India Cellular and Electronics Association (ICEA) chairman Pankaj Mohindroo expressed confidence that valid licences would be provided to trusted industry partners, allowing consumers to access trusted brands without restriction.
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