India is expected to restrict imports of laptops, tablets and computers from January to encourage companies such as Apple to expand domestic production.
If implemented, this strategy could transform an $8-10 billion industry and change the dynamics of India’s highly import-dependent IT hardware market.
A similar plan to restrict imports was scrapped last year after opposition from businesses and pressure from the United States. Since then, India has been monitoring imports under a system that expires this year and requires companies to apply for new import licenses next year.
The government believes it has given the industry enough time to adapt. New Delhi will begin talks with all parties next week. If necessary, it may take several months for import restrictions to be applied.
Companies will need to obtain advance permission for shipments under a new import permission system being developed by India’s Ministry of Electronics and Information Technology (MeitY).
Under the current regime, laptop importers are allowed to bring in an unlimited number of machines after completing an automated online registration process.
