In a surprising move, the government has decided to impose restrictions on the import of laptops, tablets, and certain types of computers. The industry players are ecstatic, claiming that this decision will do wonders for local manufacturing and align with the ambitious Make-in-India vision. The Directorate General of Foreign Trade (DGFT) announced that import licensing exemptions will be granted for up to 20 items per consignment. These exemptions are aimed at supporting research and development, testing, benchmarking, evaluation, repair and return, and product development purposes.
Optiemus Electronics Ltd (OEL) Managing Director, A Gururaj, expressed his support, stating that this restriction will significantly boost indigenous electronics manufacturing. OEL, holding a PLI (Production Linked Incentive Scheme) permit for IT Hardware, is ready to expand its manufacturing capacity for laptops and tablets. Meanwhile, Research Director of Counterpoint Research, Tarun Pathak, pointed out that approximately 65% of laptops and PCs in India are imported, making the industry heavily dependent on foreign products. The new government directive aims to change this by promoting local production and reducing reliance on imports. However, Pathak warned of potential short-term supply disruptions, especially for popular brands like Apple, HP, and Lenovo, during the upcoming festive season.
On the bright side, HP and Lenovo have already started local production of some laptops, and Samsung is now manufacturing tablets in India. Reliance Jio has also jumped on the bandwagon, introducing the JioBook - a SIM-connected e-learning device, further supporting the Make-in-India initiative. Videotex, a manufacturer for numerous brands in India, praised the government's move for encouraging the development of the whole manufacturing ecosystem within the country. They believe that reducing reliance on imports will lead to self-reliance, boost the economy, create jobs, and promote locally manufactured electronics.
The mobile devices industry body, ICEA, sees the policy announcement as a means of providing secure digital access to the growing number of digital citizens in the country. They anticipate that valid licenses will be granted to trusted industry partners, ensuring Ease of Doing Business (EoDB) and access to reliable brands for digital consumers. All in all, it seems like the government's restriction on imports is indeed a progressive step, as long as it manages the potential supply disruptions. It remains to be seen how this decision will play out in the long run and whether it will fulfil the ambitious vision of Make-in-India.
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