In lieu of giving more time to prepare for potential curbs for the manufacturers such as Apple Inc., HP Inc. and Dell Technologies Inc., India is loosening its planned restrictions on imports of laptops, tablets and other IT hardware.
Easing Planned Restrictions On IT Hardware
It seems that the country is doing away with a compulsory licensing requirement for tech importers.
Instead, they are planning to only ask such companies to register under its so-called import management system, said the people familiar with the policy.
This system is planned to start operating on November 1, sources said in the condition of anonymity as the matter is not public yet.
The move from the Indian government indicates that the country is seeking to boost local production while trying to ensure sufficient availability of consumer electronics.
It all started last month when the center shocked companies such as Apple and Samsung Electronics, as it announced a plan to curb laptop and tablet imports without a suddenly required license.
Now, all the companies bringing everything from tablets and laptops to desktop computers and servers into India will have to register, as per the latest plan.
A Much Needed Relaxation
This is much of the relaxation under the previously considered licensing regime, where companies were expected to cut back imports immediately, the new rules won’t limit inbound shipments for about six to nine months, the people said.
Eventually, a quota on imports could kick in as companies begin to manufacture laptops, tablets and other hardware locally.
This way, the size of each company’s quota will depend on its local production, import of IT hardware as well as export of such products from India, the sources stated.
It is noteworthy here that the planned new rules don’t apply to smartphones.
These initiatives are part of Prime Minister Narendra Modi’s drive to increase local production.
Hence, they plan to create a world-class tech manufacturing industry in India as companies look to diversify supply chains beyond China.
In this regard, the country has introduced a $2.1 billion financial incentive plan this year which is expected to draw computer makers to the world’s most populous nation.
The plan seems to have started working already as the Companies such as Dell, HP, Lenovo Group Ltd., Foxconn Technology Group and Asustek Computer Inc. have sought the subsidies to make laptops, tablets and other products in India.
