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By 2025, India will impose import restrictions on laptops in an effort to increase domestic manufacturing and security

Arpita Kushwaha October 19, 2024 06:27 PM

By the end of January 2025, the Indian government intends to impose import restrictions on laptops, tablets, and personal computers. This is intended to encourage homegrown production and compel multinational corporations such as Apple to expand their local product offerings.

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According to sources, this action is a component of a larger plan to lessen reliance on imports and maintain reliable supply chains in light of cybersecurity and data theft issues.

Till the final day of December 2024, the outdated IT hardware product import tracking system (IMS) in India would remain operational. This includes laptops and tablets. Businesses must register under this IMS with the amount and value of their imports.

After January 1, 2025, a new permit would be needed in order to import the aforementioned items. Aside from this, local manufacturing and supply chain security activities have been used to leverage the IMS, which was first introduced in 2023.

It is currently anticipated that import limitations would include minimum quality criteria as part of the government’s “compulsory registration order.” This would assist in removing inferior products from the market without using tariffs, which are prohibited under international trade agreements.

The IT hardware sector in India, where imports, mostly from China, account for almost two-thirds of demand, stands to be significantly impacted by the new limitations. The current estimate for India’s IT hardware market is $20 billion, with $5 billion expected for local manufacture.

Similar import limits in the past have prompted pressure by the US and outcry from businesses throughout the globe, forcing them to back down. Still, the government kept an eye on imports and is now developing more stringent regulations. However, the administration is still open to talking with all parties involved and would think about postponing the implementation of limitations, if needed.

In place of the present online automatic registration process, this will need pre-clearance prior to importation for firms.