In addition to laptops, personal computers, and servers, this directive might also extend to a wide array of completed IT hardware devices, such as 5G sensors, which are mainly sourced from China.
New Delhi: The Central Government is considering a proposal that may require finished IT hardware, like laptops, personal computers, and servers, to be imported only from ‘trusted regions’ This move is aimed at reducing imports from China due to increasing tensions between New Delhi and Beijing, The Indian Express reported.
Implementing this measure could compel IT hardware companies to create new supply chains, as China is unlikely to be designated as a trusted region. The proposal is currently in the draft stage and is referred to as an “import management system,” which would enable the government to monitor the sources of IT hardware imports.
Never Mentions China’s Name
Notably, New Delhi typically never mentions China by name when it imposes trade restrictions on imports from the country. The government is careful about the substantial impact that Chinese exports have on the Indian economy, and it aims to gradually alter this situation.
In addition to laptops, personal computers, and servers, this directive could potentially apply to a wide variety of finished IT hardware equipment, including 5G sensors, which are primarily sourced from China.
The move comes weeks after the Center attempted to introduce licensing for the import of laptops and personal computers. The confirmation has also come from the Minister of Electronics and IT, Rajeev Chandrasekhar, who stated that currently, the proposal to permit IT hardware imports only from reliable sources is under consideration. “Alongside the plan for IT hardware manufacturing, India is gearing up for the production of laptops and computers. Moreover, we believe that imports will remain a component to fulfill domestic needs, especially in high-performance sectors,” the Indian Express quoted Chandrasekhar as saying.
ICEA Urged Government To Reconsider The Import Policy
Recently, the India Cellular and Electronics Association (ICEA), representing major electronics and smartphone companies, has called on the government to reconsider the recently introduced import policy for laptops, tablets, and servers. They have expressed concerns about potential impacts on consumer prices, bilateral relations, and the growth of India’s digital economy.
This request from ICEA follows a statement made by Ashwini Vaishnaw, the Minister for Communications and IT, who mentioned that the industry had not voiced concerns regarding the import licensing requirement just a day earlier.
In a letter to Secretary at the Ministry of Electronics and Information Technology (MeitY) Alkesh Kumar Sharma, ICEA stated that the industry was going through a difficult period and any policy change could disrupt supply chains “was not advisable,” adding that the industry may take at least one to two years to have meaningful assembly and supply chain operations.
“Regarding the import management policy, we enquired about any concerns from the applicants, and they did not raise any issues,” the minister said while speaking at a press briefing about the applications under the IT hardware production-linked incentive (PLI) 2.0 scheme.
In a surprising move that caught major computer manufacturers like Dell, HP, and Apple off guard, the government announced earlier this month that it would restrict the import of laptops, tablets, and personal computers as part of an effort to promote domestic manufacturing.
Starting from October 31, a valid license will be required for the import of electronic products, including small tablets, laptops, and all-in-one PCs.