India Eyes Cap on Laptop, Tablet, and PC Imports to Boost Domestic Manufacturing

New Delhi: The Indian government is reportedly planning to introduce gradual restrictions on the import of laptops, tablets, and PCs from next year, aiming to reduce the country's dependence on imports and give a fillip to domestic manufacturing.

Under the proposed plan, the government will set a cap of 5% on imports, with the target being to increase local production in subsequent years. Currently, India allows unrestricted import of these items, which has significant implications for the IT hardware market valued at around $10 billion.

The move comes after consultations held with industry leaders from companies like IBM, Dell, and Lenovo in early November. Government officials assured stakeholders that the shift to restricted imports will be managed through a streamlined, fully online system with no manual intervention at customs.

The aim is to limit imports as countries like China and Hong Kong dominate India's laptop and similar electronics import market. With an estimated 70% of laptops imported from these regions due to security concerns, reducing reliance on them is seen as the primary goal.

While global tech firms had expressed concerns over potential disruptions when initial plans where announced in August last year, these have been postponed allowing time for adjustments. However, it was later extended until December 31, 2024 through an import management system requirement for IT hardware companies to register their imports.

"This move can boost the manufacturing sector which could indirectly improve employment and infrastructure development," said a senior government official who wished to remain anonymous. "This will also strengthen India's stand on security and reduce our dependence on sensitive technology coming from abroad,"

However, industry stakeholders are wary of the impact, as they worry that import restrictions could disrupt supply chains and lead to price hikes for consumers.

The Indian IT hardware market is heavily reliant on imports currently, although it has shown growth in recent times. If successful, these new plans would be seen as a crucial step towards increasing digital infrastructure capacity while reducing dependence on critical high-tech sectors,