India
is expected to limit imports of laptops, tablets and personal computers after
January, two government sources with direct knowledge of the matter said, a
move to push companies such as Apple to increase domestic manufacturing.
This plan, if implemented, could disrupt
an industry worth $8 billion to $10 billion and reshape the dynamics of the IT
hardware market in India, which is heavily reliant on imports.
A
similar plan to restrict imports was withdrawn last year following backlash
from companies and lobbying from the United States. India has since monitored
imports under a system set to expire this year and has asked firms to seek
fresh approvals for imports next year.
The government feels it has given the
industry enough time to adapt, said the sources, who did not want to be
identified as discussions are private.
One
of the sources said New Delhi will begin consultations with all sides starting
next week. It could delay implementing the import restrictions by a few months
if needed, the source added.
India's
Ministry of Electronics and Information Technology (MeitY) is working on a new
import authorisation system, where companies will have to get prior approvals
for their imports, one of the two sources said. Under the current regime, laptop importers are free to bring in as many
devices after an automated online registration.
The
industry is dominated by the likes of HP, Dell, Apple, Lenovo and Samsung, with
two-thirds of Indian demand being currently met through imports, a significant
amount from China. India's IT hardware
market, including laptops, is estimated at nearly $20 billion, of which $5
billion is domestic production, according to consultancy Mordor
Intelligence.
The
government is considering minimum quality standards under its 'compulsory
registration order' for laptops, notebooks and tablets, as one of the ways to
weed out low quality devices, the officials said. India has federal subsidies worth nearly $2.01 billion to promote
domestic production.
Data
from research firm Counterpoint shows imports of laptops completely assembled
abroad in the first five months of 2024 fell 4% from a year earlier, with firms
such as Lenovo and Acer increasing local assembly for entry-level laptops.
In 2022, Indian Prime Minister
Narendra Modi said India should cut reliance on foreign countries for
communication technology such as servers. India will implement mandatory
testing of "essential security parameters" for all CCTV cameras from
April 2025.