- India is requiring licenses for the import of computers from laptops to tablets intended to encourage local electronics production.
- Laptops and tablets account for a fraction of the annual import of electronics of more than $60 billion.
- The program aims to capitalize on the demand for laptops, tablets, and servers in India and also aims to make the country a hub for electronics exports.
- While Apple has yet to begin making iPads or MacBook laptops in India, the incentives and import restrictions could push other companies to consider such moves.
- The scheme is key to India’s ambitions to become a powerhouse in the global electronics supply chain, with the country targeting annual production worth $300 billion by 2026.
India said it will impose a licensing requirement for imports of laptops, tablets, and personal computers with immediate effect, a move that could hit hard the likes of Apple, Dell, and Samsung and force them to boost local manufacturing.
Current regulations in India allow companies to import laptops freely, but the new rule mandates a special license for these products similar to restrictions India imposed in 2020 for inbound TV shipments.
Industry executives said a licensing regime would mean prolonged wait times for each new model they launch and would come just ahead of a festive season in India when sales typically surge.
The government notification gave no reason for the move, but Prime Minister Narendra Modi‘s government has been promoting local manufacturing and discouraging imports under his “Make in India” plan. India’s electronics imports, which include laptops, tablets, and personal computers, stood at $19.7 billion in the April to June period, up 6.25% year-on-year. Laptops, tablets, and personal computers account for about 1.5% of India’s total annual imports, with nearly half of those from China, according to government data.
Many of Apple’s iPads and Dell’s laptops are imported into the country, rather than being manufactured locally. The intent seems to be “substitution of certain goods that are imported heavily”, said Emkay Global economist Madhavi Arora.
Apple, Dell, and Samsung did not immediately respond to the news agency’s requests for comment. They, along with Acer, LG Electronics, Lenovo, and HP Inc, are some of the key sellers of laptops in the Indian market.
The move is expected to benefit contract manufacturers like Dixon Technologies, whose shares rose more than 7% on the news.
India’s government has extended the deadline for companies to apply for a $2 billion incentive scheme to attract big-ticket investments in IT hardware manufacturing, which covers products like laptops, tablets, personal computers, and servers.
The scheme is key to India’s ambitions to become a powerhouse in the global electronics supply chain, with the country targeting annual production worth $300 billion by 2026. The country has imposed high tariffs in the past on products like mobile phones to catalyze domestic output.
(With inputs from agencies)
