PC makers want more time to go local

Import curbs on laptops, tablets: MNCs seek more time to set up factories; urge pushing back licensing deadline

Stumped by the announcement of the government disallowing free import of laptops, tablets and other electronic devices, representatives of MNC brands such as Apple, Dell, HP and Acer have urged the Centre to extend the deadline required to obtain licenses for such imports. They met officials of the ministry of electronics and information technology on August 8 and requested an extension of nine to 12 months before the need for licenses to import devices is imposed.

The Economic Times reported that they informed the ministry that they needed the time to set up their manufacturing units in India.

“The companies need reasonable time to set up manufacturing. We are also unsure about the process for licensing and the data needed from us. So, we will need this time,” a representative of one of the companies present in the meeting told the newspaper.

Representatives of Manufacturing Association of IT Hardware and India Cellular and Electronics Association were also present at the meeting.

Incidentally, restrictions were placed on the import of “personal computers, laptops, tablets, all-in-one PCs, ‘ultra-small form factor’ computers, and servers” falling under HSN code 8741. The objective of the move was to promote manufacturing on Indian soil. The government wants to apply production-linked-incentive scheme to spice up its offer.

While the restrictions were placed last week, the following day the Director General of Foreign Trade said the need for a license to import these items was pushed back to November 1, 2023.

During the meeting, ministry officials also sought from the industry representatives how much time they would require to set up manufacturing facilities in the country. They also assured the industry executives that the government wanted to minimise imports, promote manufacturing in India and promote exports of their devices from India.

Industry representatives tried to impress upon the ministry that there should not be curbs on import of high-end devices such as top-of-the-line laptops and PCs since there is no facility to manufacture these in India yet.

Industry executives indicated that the government could also ask them for an idea of how many high-end devices could they import after November 1.

However, the way to obtain the licenses needed for import was reportedly not discussed in the meeting. Industry executives said that it could be taken up in a separate meeting.

Incidentally, there is a standard procedure to obtain licenses needed for the import of television sets and AC machines.

IT hardware worth $8.8 billion was imported in FY23 in India. Almost 58% of that amount ($5.1 bn) came from China. Singapore accounted for only $1.3 bn.

Incidentally, many scampered to buy laptops and other devices after news of the looming import restrictions spread, the driving motive being the apprehension that prices might rise after the licensing era begins.