India Restricts Imports of Laptops and PCs to Promote Domestic Manufacturing

The Directorate General of Foreign Trade (DGFT) of India prohibited the possession of certain laptops and computers under HSN 8471 with immediate effect on Thursday.

The decision is seen as part of the government’s aim to increase the manufacturing sector and minimize its dependence on imported products.

In the past, the country has imposed expensive tariffs on products such as mobile phones in order to expand domestic output.

The Ministry Shared a notification of Commerce and Industry on August 3, 2023, the import of these commodities shall now be defined as restricted and would require a valid restricted import license.

According to the notification: Laptops, Tablets, All-in-One Personal Computers, and Ultra Small Form Factor Computers and Servers falling under HSN 8741 will be restricted, and their import will be permitted only with a valid Restricted Import Licence.”

According to data from the Ministry of Electronics and Information Technology, the government may also be attempting to lower the trade deficit in electronic goods, which reached $21.5 billion in 2020–21. In 2020–21, India imported $58.7 billion in electronic goods while supplying only $37.2 billion.

According to industry officials, a license regime would imply a longer waiting period for each new model launched, and it would come right before the festive season in India, when sales generally increase.

The official notification provided no explanation for the change, but Prime Minister Narendra Modi’s government has been supporting domestic manufacturing and limiting imports as part of his “Make in India” initiative.

The initiative is crucial for India’s ambitions to become a global electronics supply chain powerhouse, with the country aiming for a total of $300 billion in annual manufacturing operations by 2026.

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