Previously, the government had attempted to enforce licensing requirements on these imports, but due to industry opposition, implementation was postponed until October 31
The Indian government has unveiled its 'import management system' to IT hardware companies like Apple, Dell, and HP. Starting from November 1, these companies will need to register and provide information about their imported electronic hardware, such as laptops and personal computers, according to a report by The Indian Express. This includes details about the countries from which they import these products and their domestic sales figures. The report suggests that the Directorate General of Foreign Trade (DGFT) recently met with industry representatives to demonstrate the new portal designed for tracking these imports.
The portal allows companies to input data about the quantity of imports, local sales value, and import sources. Previously, the government had attempted to enforce licensing requirements on these imports, but due to industry opposition, implementation was postponed until October 31. While officials are avoiding the term 'licensing,' it's clear that the government aims to reduce import dependence, especially from China, by encouraging local production through the IT hardware production-linked incentive (PLI) scheme.
Initially, companies will register and share information about their laptop and computer imports and sources. Eventually, the government plans to make it mandatory for companies to source from "trusted sources" to reduce reliance on Chinese imports. The quota system, which was considered earlier, will be implemented gradually based on a credit formula tied to domestic production and imports.
Companies like Apple, which do not have immediate plans for local production in India, may negotiate with the government to maintain their import quotas by boosting overall electronics exports from the country. Notably, Apple recently surpassed Samsung in smartphone exports from India, shipping 49% of the country's total 12 million shipments in the June quarter, compared to Samsung's 45%.
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