Laptop, PC imports: Here's how the new govt mandated permits can impact the electronics sector

In early August, the government announced that from November 1, 2023, import permits would be required to ship laptops, tablets, all-in-one personal computers (PCs), ultra-small form factor computers and servers to the country. The Directorate General of Foreign Trade (DGFT) has already developed a portal through which companies or traders can apply for licences, with the promise of processing it in just two days if all necessary paperwork is submitted. Experts say this will benefit ‘Make in India’ and the Production-Linked Incentive (PLI) Scheme 2.0 for IT Hardware.

“The announcement is a positive move, as it seeks to restrict certain electronics imports and enforce licences for restricted items, promoting domestic production and self-reliance,” explains Prabhu Ram, Head-Industry Intelligence Group, CyberMedia Research, a market research firm. However, many don’t see a necessity for it. “Most brands selling these products are well-known names, but they must now apply for import permits and licences before they can bring them into the country. Maybe this will help the government keep tighter control on entry-level segments where lesser-known brands might sneak in without quality assurance. Still [I’m] not sure why it’s done,” says Faisal Kawoosa, Founder and Chief Analyst at market intelligence firm Techarc.

Minister of State for Electronics and IT Rajeev Chandrasekhar set the record straight, saying, “This is not at all about licence raj; it is about regulating imports to ensure trusted and verifiable systems, and ensuring India’s tech ecosystem uses only trusted and verified systems that are imported and/or domestically manufactured.”

In May, the Union cabinet approved PLI 2.0 for IT hardware, under which 40 applications have been received, including from top players like HP, Dell, Asus and Acer. However, as building an ecosystem will take time, industry players are seeking an extension to the import licence requirement.

@nidhisingal