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India’s Plan to Restrict Laptop Imports and Boost Local Manufacturing

Intan Rakhmayanti Dewi, CNBC Indonesia

Tech

Friday, 04/08/2023 07:10 WIB

Pictured: An attendee looks at the newly redesigned MacBook Air laptop during WWDC22 at Apple Park on June 06, 2022 in Cupertino, California. Apple CEO Tim Cook kicks off the annual WWDC22 developer conference. (Getty Images/Justin Sullivan)

Jakarta, CNBC Indonesia – India is planning a bold move to force global laptop and PC manufacturers to build local factories. In the near future, it will be difficult to import laptops, tablets and computers into India.

“Their import will be permitted with a valid permit for limited import,” the government notice said.

Dell, Acer, Samsung, LG Electronics, Apple Inc, Lenovo and HP Inc are some of the main companies selling laptops in the Indian market and most of them are imported directly from China.

Laptops, tablets and personal computers account for about 1.5% of the country’s total annual imports and nearly half are purchased from China, according to government data.

In April-June, electronics imports, which include laptops, tablets and computers, totaled US$19.7 billion, up 6.25% year-on-year. Meanwhile, electronic imports range from 7% to 10% of the country’s total imports of merchandise.

“The spirit of the move is to push manufacturing into India. It is a push,” said Ali Akhtar Jafri, former director general at electronics industry body MAIT.

This import restriction is part of India’s efforts to encourage the relocation of factories from outside to inside the country. The Modi government is also offering various incentives to support India’s ambition to strengthen its position in the global electronics supply chain system.

India is targeting US$300 billion in annual electronics production by 2026. Recently, the local government extended a deadline for companies to apply for a US$2 billion manufacturing incentive scheme to attract large investments in manufacturing information technology hardware, which includes products such as laptops. , tablets, personal computers, and servers.

India also imposes high tariffs on products such as cell phones to provide protection for domestic production.

Last year, India produced US$38 billion worth of mobile phones in the country, while local production of laptops and tablets was only US$4 billion, according to estimates from industry body the Mobile and Electronics Association of India.

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2023-08-04 00:10:04
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