India is poised to limit imports of laptops, tablets, and personal computers starting in January, according to two government sources familiar with the discussions. This move aims to encourage companies, including Apple, to ramp up domestic manufacturing.
If implemented, these restrictions could disrupt an industry valued between $8 billion and $10 billion and significantly alter the IT hardware market in India, which currently relies heavily on imports.
Last year, a similar proposal to restrict imports was retracted due to pushback from companies and lobbying efforts from the United States. Since then, India has been monitoring imports under a system set to expire this year, requiring companies to obtain new approvals for imports in the upcoming year.
The government believes it has allowed sufficient time for the industry to adjust, according to the sources, who requested anonymity due to the sensitivity of the discussions. One source mentioned that New Delhi plans to initiate consultations with all stakeholders starting next week and may postpone the implementation of import restrictions by a few months if necessary.
The Ministry of Electronics and Information Technology (MeitY) is developing a new import authorization system that would require companies to obtain prior approval for their imports. Currently, laptop importers can freely bring in devices after completing an automated online registration process.
The industry is primarily dominated by major players like HP, Dell, Apple, Lenovo, and Samsung, with imports currently satisfying two-thirds of India’s demand—significantly from China. The overall IT hardware market in India, which includes laptops, is estimated to be nearly $20 billion, with around $5 billion coming from domestic production, according to consultancy Mordor Intelligence.
The government is also considering implementing minimum quality standards under its “compulsory registration order” for laptops, notebooks, and tablets to eliminate low-quality devices, officials noted.
“We are exploring such restrictions, as global treaties prevent us from imposing tariffs on laptops and tablets, leaving us with limited policy options for curbing imports,” said the second official.
The federal electronics ministry did not respond to requests for comment, while the trade ministry stated that decisions regarding the import management system would be made after consultations with the electronics ministry and other stakeholders.
Such restrictions would benefit contract manufacturers like Dixon Technologies, which have formed agreements with global companies like HP to produce laptops and computers in India. Dixon aims to meet 15% of India’s total demand.
Local Production
The limits on imports should be calibrated according to India’s domestic production capacity, as suggested by an industry source involved in government consultations.
India’s production incentive scheme for IT hardware has attracted participation from global firms, including Acer, Dell, HP, and Lenovo. Many approved participants are prepared to commence manufacturing, as noted by India’s electronics minister last year.
With federal subsidies amounting to nearly $2.01 billion aimed at promoting domestic production, research from Counterpoint shows that imports of fully assembled laptops in the first five months of 2024 decreased by 4% compared to the previous year, with companies like Lenovo and Acer increasing local assembly for entry-level laptops.
India has long emphasized the importance of sourcing electronics and communication devices from “trusted sources,” amid rising concerns about cyberattacks and data theft. In 2022, Prime Minister Narendra Modi highlighted the need to reduce dependence on foreign nations for communication technologies such as servers.
Furthermore, mandatory testing of “essential security parameters” for all CCTV cameras will be implemented starting in April 2025.
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