India’s Laptop Import Licensing Hits Apple and Dell

Thu Aug 03 2023
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NEW DELHI: India has announced the immediate imposition of a licensing requirement for the import of laptops, tablets, and personal computers. This decision caught major brands like Apple, Dell, and Samsung off guard. It aligned with Prime Minister Narendra Modi’s ambitious “Make in India” plan to promote local manufacturing and reduce the country’s import dependence.

Prior to this regulation, companies were free to import laptops without any restrictions. However, with the new licensing regime, tech giants will need to obtain a special license for these products, similar to the restrictions imposed on inbound TV shipments in 2020.
Industry experts say that this measure has left industry executives concerned about potential delays in launching new models, particularly with the festive season approaching when sales typically experience a surge.

While the government’s notification did not offer specific reasons for this move, it reflects India’s determination to bolster its domestic manufacturing capabilities. India’s electronics imports, from April to June, remained $19.7, marking a 6.25% year-on-year increase.
Laptops, tablets, and personal computers account for approximately 1.5% of India’s total annual imports, with almost half of these devices exported from China.

The impact of this decision is likely to be significant for companies like Apple, Dell, and Samsung, as many of their laptops and iPads are imported rather than locally manufactured.

In contrast, contract manufacturers such as Dixon Technologies stand to benefit, as they are poised to play a pivotal role in boosting domestic manufacturing in India.

The Indian government has also extended the deadline for companies to apply for a $2 billion incentive scheme to attract substantial investments in IT hardware manufacturing, covering laptops, tablets, personal computers, and servers. This incentive scheme is central to India’s ambition of becoming a major player in the global electronics supply chain, aiming to achieve annual production worth $300 billion by 2026.

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