India likely to dial down plans to curb personal computer imports

Import licensing requirements were to be implemented in 2023. The govt has so far deferred the timeline on four occasions and has now set Dec 2025 as deadline

The Union government is open to the idea of doing away with all restrictions on the import of laptops, all-in-one personal computers, tablets, ultra-small form factor computers, and servers if companies stick to the domestic production commitments made under the production linked incentive (PLI) scheme, sources told Business Standard.

 

For the current financial year started April 1, all major laptop and information technology hardware device and component manufacturers had shared plans on increasing the domestic value addition with the ministry of electronics and information technology (MeitY). The plans included increasing localised production and sourcing of electronics components such as printed circuit boards, laptop casings, sub-assemblies such as speakers, microphones, display, among others, a senior government official said.

 

“Of course there will be mid-year reviews and audits. All these companies have shared their plans and timelines with us. We want to approach it in a calibrated manner and are open to the idea of dropping restrictions altogether. If these companies are unable to fulfil the commitments they have made, we will look into the reasons and understand if there is anything that the government can do,” the official said.

 

On August 3, 2023, the central government had introduced restrictions on the import of laptops, all-in-one personal computers, tablets, ultra-small form factor computers, and servers. While these import licensing requirements were set to be implemented immediately, the government has so far deferred the timeline four times, initially by three months to November 2023, then to March 2024, and then by a year to March 2025, and now till December 2025 after pushback from industry participants and other stakeholders.

 

Last November, the government had also proposed easing import restrictions and floated the idea of IT hardware companies cutting their total import bill for the components used in these electronics by 5 per cent every fiscal year while continuing to improve the local value addition. The proposal, however, was never officially announced.

 

The government’s restrictions on laptop imports have also found mention in the United States government’s 2025 National Trade Estimate Report on Foreign Trade Barriers. The report has said that US exporters have “expressed concerns over the lack of prior stakeholder consultations” on laptop and other IT hardware import restrictions which also appeared to include “an import licensing requirement”.

 

The report added that the US continues to monitor the situation and engage with India on these concerns.