India announced on Thursday that there will be an immediate import restriction for laptops and personal computers.
Entities or companies planning to sell laptops and computers in India will now need to apply for and obtain a "Valid Licence for Restricted Imports."
This sudden move means that companies like Apple, Lenovo, HP, Asus, Acer, Samsung, and others, which sell laptops and computers in India after importing them from abroad, will have to halt their imports.
Most laptops and personal computers sold in India are manufactured or assembled in China, and this restriction might encourage the government's aim to shift some of this manufacturing and assembly to India, similar to what has been achieved with smartphone manufacturing. The directive on import restrictions was issued by the Directorate General of Foreign Trade.
The new import restrictions are expected to lead to an increase in the prices of laptops, computers, MacBooks, and Mac Minis in the Indian market, at least until companies obtain special permits to import these devices. This move may benefit Indian companies like Reliance, which recently launched JioBook, as local companies may find it easier to obtain the import exemption license.
While the short-term implications of the import restrictions are not entirely clear, it is expected that the current laptops in the market will see an increase in prices due to scarcity caused by higher demand and limited supply.
The government's move is aimed at promoting domestic production and reducing dependence on imports, and it aligns with their efforts to encourage local manufacturing under the PLI Scheme 2.0 for IT Hardware.
The import restriction does not apply to the parts of these machines, which can still be imported freely. The notice also allows for some exceptions, including imports under Baggage rules for personal use and specific purposes like research, development, testing, benchmarking, and repair, where up to 20 pieces per consignment are exempt from the import licensing requirement.
