The Directorate General of Foreign Trade (DGFT) has announced that starting from November 1, 2023, the import of certain laptops and computers falling under HSN 8471 will be restricted, according to The Economic Times report. After this date, individuals and businesses will need a license to import laptops, computers, and related items into India.
According to the notification issued by DGFT, import consignments can be cleared without a license until October 31, 2023, allowing a grace period for existing importers to adjust to the new regulations. Additionally, liberal transitional arrangements will be made for the import of laptops, tablets, all-in-one personal computers, and servers until the set deadline.
The decision to impose restrictions on electronics imports aims to encourage Indian manufacturers to bridge the gap, as electronics imports, including laptops, tablets, and personal computers, have amounted to $19.7 billion between April and June 2023, growing at an annual rate of approximately 6 per cent.
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The Economic Times report added that in line with its efforts to boost local manufacturing, the Indian government has offered production-linked incentives in more than two dozen sectors, including electronics. A $2 billion manufacturing incentive scheme has been introduced to attract significant investments in IT hardware manufacturing, which covers products like laptops, tablets, personal computers, and servers. This incentive scheme is crucial to India’s ambition of becoming a prominent player in the global electronics supply chain, with the goal of achieving an annual production worth $300 billion by 2026.
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Notably, the restriction on imports will not apply to imports under the Baggage Rules, which may provide some relief for individuals traveling with personal laptops or computers.
Key players in the Indian laptop market, such as Dell, Acer, Samsung, LG Electronics, Apple Inc, Lenovo, and HP Inc, import a significant portion of their products from countries like China. With the new regulations in place, these companies will need to adapt their strategies to comply with the licensing requirements or consider local manufacturing to continue their operations in the Indian market.
