The Indian government has decided against imposing a ban on laptop imports opting instead to focus on promoting domestic manufacturing through initiatives like the Production Linked Incentive (PLI) scheme. This approach is in line with the government’s strategy to encourage local production without restricting imports immediately. Shift From Import Ban To Domestic Manufacturing Initially the government announced a ban on laptop imports on August 3 2023 which was to take effect from October 1 2023. However the move faced resistance from manufacturers such as HP and Dell leading the government to reconsider its decision. Officials now believe that as domestic production scales up the dependency on imported laptops will automatically decline following a similar trend seen in the smartphone industry. Growth In Domestic Production According to a Navbharat Times report government officials stated that companies like HP and Dell are set to ramp up local manufacturing in the coming financial year. Additionally efforts to establish a robust ecosystem for component manufacturing within the country are underway. The government is also focusing on attracting investments in the semiconductor sector to support the production of laptops and other electronics. However India’s $10 billion budget for the semiconductor sector is relatively small compared to the investments made by countries like Japan the U.S. Europe and China. Benefits of the PLI Scheme The PLI scheme introduced in 2023 is expected to play a crucial role in accelerating laptop manufacturing in India. HP and Dell have committed to increasing production under this initiative with investments totaling ₹17000 crore. Domestic manufacturing is expected to commence in the upcoming financial year. Context Of Laptop Import Ban The government initially announced a ban on laptop imports to encourage local production. However the backlash from manufacturers prompted a re-evaluation. Companies that were initially reluctant to set up manufacturing facilities in India such as HP and Dell have now committed to doing so following the government’s decision to step back from the ban. The government’s strategy shows its approach to the smartphone sector where domestic production was boosted without imposing an outright import ban.