Govt extends import regime for IT hardware products till December 31

Asks companies to seek fresh approvals based on new guidelines from January 1

The Centre on Tuesday extended the import management system for laptops and other IT hardware products for three more months—till December 31—and asked companies to seek fresh approvals for imports based on new guidelines from January 1.

The existing system is valid only till September 30. “Importers would be required to apply for fresh authorisations for the period from January 1, 2025, subject to detailed guidance to be provided shortly,” according to a Directorate General of Foreign Trade (DGFT) notification.

The import management system kicked in on November 1, 2023, to promote domestic manufacturing of these goods, reduce dependence, especially on China, and ensure a trusted supply chain for electronics in the country. Last year, the government had also said that the import data would be closely studied before deciding how to take it forward.

The system covers laptops, tablets, all-in-one personal computers, ultra-small form factor computers, and servers.

Last month, Business Standard had reported that the government might consider extending the import management system for laptops and other IT hardware products for a few months, as the domestic manufacturing ecosystem for these products is not yet robust.

In August last year, the government announced that it planned to issue licences for the import of IT hardware products. However, amid massive reservations from companies, industry lobby groups, and key trade partners, India stepped back from its earlier plan and a new ‘contactless’ import management system was introduced in November. Under this system, the import permit is issued in an end-to-end online format.

Experts and the industry, however, raised concerns regarding the decision.

Kumar Deep Banerjee, country director of the Washington-based IT lobby group ITI Council, said that the industry needs more clarity on the proposed new import authorisation scheme, set to be in place from January 2025. “We expect a robust stakeholder consultation before implementing any new requirements,” Banerjee said.

India’s repeated delay in implementing laptop import restrictions, likely influenced by the United States’ concerns, needs to end, and it is time for India to enforce these measures and boost local production, said Ajay Srivastava, founder of the Delhi-based think tank Global Trade Research Initiative (GTRI) and former trade ministry official.

According to Srivastava, such restrictions would push American tech giants like Apple, Dell, and HP, which manufacture in China, to set up operations in India.

“The US’s stance on China is inconsistent. It imposes tariffs and restrictions on Chinese goods like solar cells and electric vehicles to protect its own interests but resists when other nations take similar steps that might affect American companies. India has a strong case for building its own laptop manufacturing capabilities. China controls 81 per cent of the global PC and laptop market, and any disruption there could have global repercussions,” he said.