Making in India

Government intervention doesn’t always yield the intended results. The Union government, for instance, had announced in August that it would bring seven products in the information technology (IT) hardware segment to the restricted category. While the plan was deferred till October 30 and the government clarified its position, the market sensed possible uncertainty, at least in the short run, and advanced imports. As a result, imports of computers, laptops, and related products surged 42 per cent in September to $715 million. The Union government has been trying to reduce import dependence on China for quite some time, partly because of the broader geopolitical conditions. This particular policy was also seen in this context. The other reason for restricting imports is