India Restricts Import of Laptops, Tablets, Servers And Other PCs

The Indian government has imposed restrictions on the import of laptops, tablets, servers and other Personal Computers (PCs), in an attempt to give a push to local manufacturing.

The Centre has imposed the restriction, in an attempt to give a push to local manufacturing.

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The Indian government on Thursday imposed restrictions on the import of laptops, tablets, servers and other Personal Computers (PCs) with immediate effect. The Centre has imposed the restriction, in an attempt to give a push to local manufacturing. "Their import would be allowed against a valid licence for restricted imports," said a notice issued by the Ministry of Commerce and Industry, Department of Commerce, Government of India.

According to the notice issued by the Centre: “Exemption from Import Licencing requirements is provided for Import of 1 All-in-one Personal Computer, or Ultra small form factor Computer, including those purchased from e-commerce portals, through post or courier. Imports shall be subject to payment of duty as applicable." 

The restriction shall not be applicable to imports under baggage rules, it added.

“Given imports shall be allowed subject to condition that the imported goods shall be used for the stated purposes only and will not be sold. Further, after the intended purpose, the products would either be destroyed beyond use or re-exported,” the ministry noted.

It should be noted that leading laptop and PC maker HP manufactures its HP EliteBooks, ProBooks and mouses in India. Dell signed an agreement last year to expand its notebook production in the country under the PLI scheme. Lenovo, on the other hand, has a PC manufacturing facility in Puducherry. It also locally assembles its tabs in partnership with Wingtech Technology in Andhra Pradesh. 

In a bid to increase local production, India has been providing incentives to companies in recent years. The government's initiative has successfully given way to a number of prominent smartphone manufacturers to locally assemble/manufacture their devices in India. This is also increasingly piquing the interest of semiconductor manufacturers and chip makers in the country.

Earlier this week, Key Apple iPhone supplier and the world's biggest contract manufacturer Foxconn announced it is mulling to invest $600 million, or roughly Rs 4,955 crore in India. Taiwan's Foxconn will invest in the Southern Indian state of Karnataka for chip equipment manufacturing and casing components for iPhones. Foxconn's investment is expected to generate roughly 12,000 jobs. Some $350 million, or roughly Rs 2,890 crore will go towards setting up the Apple iPhone component facility, while Foxconn will tie up with Applied Materials in a $250 million, or roughly Rs 2,064 crore project to make chip-making tools.