The government has extended the existing import authorisation system for seven IT hardware items, including laptops, PCs and tablets, set to lapse on September 30, by three months till the end of the year.
“Importers would be required to apply for fresh authorisations for the period from January 1, 2025, subject to detailed guidance to be provided shortly,” per a notification issued by the Directorate General of Foreign Trade on Tuesday.
This means that importers of the seven IT hardware products, which were placed under the restricted import category on October 1, 2023, will continue to operate under the existing non-prohibitive rules which do not put any restrictions on quantities as long as importers apply to the DGFT for automatic import authorisations.
However, there is no clarity on the dispensation that will be in place from January 1, 2025, when fresh import authorisations are to be applied for as the detailed guidance is yet to be shared. The final decision is likely to be taken by the Ministry of Electronics and IT (MeITY) in consultation with the industry and other line Ministries.
The seven IT hardware items also include ultra small form factor computers, servers, mainframe computers and automatic data processing machines.
“India’s repeated delay in implementing laptop import restrictions, likely influenced by US concerns, needs to end. It’s time for India to enforce these measures and boost local production. Such restrictions would push American tech giants like Apple, Dell, and HP, which manufacture in China, to set up operations in India,” said Ajay Srivastava from the Global Trade Research Initiative (GTRI).
India has a strong case for building its own laptop manufacturing capabilities. China controls 81 per cent of the global PC and laptop market, and any disruption there could have global repercussion, Srivastava added.
While the idea behind the restriction, as explained by India at the WTO, was to ensure supply chain resilience and address national security concerns, the regime was liberal as the import authorisations were automatic and there were hardly any rejection of applications.
“... it is clarified that the importers are allowed to apply for Import Authorisations which will be valid up to December 31, 2024. Further, the existing Import Authorisations issued till September 30, 2024, will continue to be valid up to December 31, 2024,” per the DGFT notification.
The import authorisation system did not affect imports significantly with total imports of the seven IT hardware items declining about 3.4 per cent in 2023-24 to $8.4 billion compared to $8.7 billion in the previous fiscal. The share of China, the country being especially scrutinised by MeitY, was at about 60 per cent, sources said.