Companies will have time till the end of the year to import laptops and personal computers, but they will have to seek fresh approval from January 1. Existing permits issued till September 30 will remain valid till the end of the year. The Ministry of Commerce and Industry further said that detailed guidelines for approval will be issued soon.
The government’s decision comes after India last year announced a new system for imports of laptops, tablets, personal computers and servers after it withdrew its plan to impose a licensing regime following criticism from the industry and the United States Trade Representative (USTR) during the G20 meeting in India.
“Importers will have to apply for new authorisations from January 1, 2025, subject to detailed guidance to be provided soon,” an official notification issued on Tuesday said.
Government sources indicated that the system could be extended further by at least another quarter after the current December deadline, The Indian Express reported. The government is currently in a wait-and-watch mode as companies are set to resume production under the revised production-linked incentive (PLI) scheme for IT hardware. And may impose a ban once domestic manufacturing in the sector reaches a critical level.
The purpose of introducing licensing regime for imports
The original move to introduce a licensing regime for imports of laptops and personal computers last year was aimed at discouraging imports from China, which accounts for the biggest share of India’s supply of these devices. However, The Indian Express had earlier reported that China’s share in overall laptop imports has increased since the government temporarily withdrew the policy last October amid strong opposition from the industry.
China holds 81 percent of the PC and laptop market
India is in a strong position to have its own laptop manufacturing capabilities. China controls 81 per cent of the global PC and laptop market, and any disruption there could have global ramifications. As per a commitment made in 1997 under the Information Technology Agreement at the World Trade Organisation, India cannot raise duties on laptops, PCs and similar IT products, which currently come at zero duty in the country.