India Restricts Import Of Computers

India has restricted imports of laptops, tablets, and personal computers with immediate effect.

According to a government notice, the ban is geared towards pushing local manufacturing.

“Their import would be allowed against a valid licence for restricted imports,” the notice said.

India has been trying to push local manufacturing by giving production-linked incentives in over two dozen sectors, including electronics.

It has extended the deadline for companies to apply for its $2 billion manufacturing incentive scheme to attract big-ticket investments in IT hardware manufacturing, which covers products like laptops, tablets, personal computers, and servers.

“The move’s spirit is to push manufacturing to India. It’s not a nudge, it’s a push,” former director general at electronics industry body MAIT, Ali Akhtar Jafri said.

Meanwhile, India has imposed high tariffs in the past on products like mobile phones to catalyze domestic output.

Last year, it produced $38 billion worth of mobile phones in the country, while local production of laptops and tablets was just $4 billion in comparison, according to estimates from the industry body India Cellular and Electronics Association.

In April-June, electronics imports, which include laptops, tablets, and personal computers, were $19.7 billion, up 6.25% year-on-year.

Electronics imports range from 7% to 10% of the country’s total merchandise imports.

REUTER/Christopher Ojilere