New Delhi:

India is expected to limit imports of laptops, tablets and personal computers after January, two government sources with direct knowledge of the matter said, a move to push companies such as Apple to increase domestic manufacturing.

This plan, if implemented, could disrupt an industry worth $8 billion to $10 billion and reshape the dynamics of the IT hardware market in India, which is heavily reliant on imports.

A similar plan to restrict imports was withdrawn last year following backlash from companies and lobbying from the United States. India has since monitored imports under a system set to expire this year and has asked firms to seek fresh approvals for imports next year.

The government feels it has given the industry enough time to adapt, said the sources, who did not want to be identified as discussions are private.

One of the sources said New Delhi will begin consultations with all sides starting next week. It could delay implementing the import restrictions by a few months if needed, the source added.

India’s Ministry of Electronics and Information Technology (MeitY) is working on a new import authorisation system, where companies will have to get prior approvals for their imports, one of the two sources said.

Under the current regime, laptop importers are free to bring in as many devices after an automated online registration.

The industry is dominated by the likes of HP, Dell, Apple, Lenovo and Samsung, with two-thirds of Indian demand being currently met through imports, a significant amount from China. India’s IT hardware market, including laptops, is estimated at nearly $20 billion, of which $5 billion is domestic production, according to consultancy Mordor Intelligence.

The government is considering minimum quality standards under its ‘compulsory registration order’ for laptops, notebooks and tablets, as one of the ways to weed out low quality devices, the officials said.

“We are working on such restrictions as global treaties stop us from any tariff action on laptops and tablets. It leaves us with few policy options to limit imports,” the second official said.

The federal electronics ministry did not respond to request for comment. The trade ministry said an appropriate decision on the import management system would be taken after consultation with the electronics ministry and other stakeholders.

Such a move will benefit contract manufacturers such as Dixon Technologies who have entered separate pacts with global firms like HP to make laptops and computers in India. Dixon aims to cater to 15% of India’s total demand.

LOCAL PRODUCTION

Limits to India’s imports should be calibrated based on India’s domestic production capacity, an industry source who is part of the government’s consultations said.

The nation’s key production incentive scheme for IT hardware has drawn participation from global firms including Acer, Dell, HP and Lenovo. Most of the approved participants are ready to start manufacturing, India’s electronic minister said last year.

India has federal subsidies worth nearly $2.01 billion to promote domestic production.

Data from research firm Counterpoint shows imports of laptops completely assembled abroad in the first five months of 2024 fell 4% from a year earlier, with firms such as Lenovo and Acer increasing local assembly for entry-level laptops.

India has been long emphasised the need for “trusted sources” for electronics and communication devices amid growing concerns over cyberattacks and data theft.

In 2022, Indian Prime Minister Narendra Modi said India should cut reliance on foreign countries for communication technology such as servers.

India will implement mandatory testing of “essential security parameters” for all CCTV cameras from April 2025.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

New Delhi:

With the US flagging concerns over India’s decision to impose import restrictions on certain electronic devices, both countries have agreed to find a solution to the issue that addresses the concerns of both nations, according to a statement of United States Trade Representative (USTR). 

The issue was flagged during a meeting between Commerce and Industry Minister Piyush Goyal and US Trade Representative Katherine Tai here on August 26.

The two ministers also directed their officials to continue their discussions to mutually resolve the last pending trade dispute with regard to certain poultry products at the World Trade Organisation (WTO).

“Ambassador Tai also raised concerns related to India’s import licensing requirements for technological equipment. She noted that there were stakeholders that needed an opportunity to review and provide input to ensure that the policy, if implemented, does not have an adverse impact on US exports to India,” according to a readout of Ambassador Tai’s meeting with Mr Goyal.

“Ambassador Tai and Minister Goyal agreed to explore this issue further and find a solution that addresses both countries’ concerns,” the statement, posted on the USTR website, said.

India’s imports of these products (PCs/laptops, tablets, Wifi Dongles, Smart Card Reader, Android TV Boxes) were worth USD 8.8 billion in 2022-2023. Earlier this month, India said that it would impose import restrictions on electronic devices like laptops and computers (including tablet computers) from November 1 on security grounds with an aim to boost domestic manufacturing and cut imports from countries like China.

It added that Tai and Goyal discussed the seventh outstanding WTO dispute with regard to measures concerning the importation of certain agricultural products.

“They tasked their respective teams with continuing discussions on this dispute in order to reach a solution soon,” it added.

During Prime Minister Narendra Modi’s visit to the US in June, the two countries announced ending of six trade disputes at the WTO and India’s removal of tariffs on certain Us products (chickpeas, lentils, almonds, walnuts, apples, boric acid, and diagnostic reagents).

They also looked forward to reconvening the US-India Trade Policy Forum later this year.

The poultry case was filed by the US against India in the WTO in 2012. India has lost the dispute both at the panel as well as the appellate body levels. It was ruled against India that New Delhi’s ban on imports of poultry products from the US was inconsistent with global norms.

As India was not able to implement the decision within the stipulated time frame, the US had demanded compensation. Now both countries are discussing ways to resolve the case mutually.

The US is the largest trading partner of India. In 2022-23, the bilateral goods trade increased to USD 128.8 billion as against USD 119.5 billion in 2021-22. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)