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Indian Government Banned Imports of Laptop, Tablets and personal computers

Indian Government Banned Imports of Laptop

Introduction

The Indian Government has taken a very big decision today. Self-reliant India, Make in India was being discussed a lot for the last few years, especially after Kovid. If we talk about mobile phones, the manufacturing of mobile phones has started slowly in India to a large extent. But laptops, tablets, such electronic devices were still imported in large quantities. But the government has recently said that the laptops. There are tablets, there are personal computers, on which the government is imposing restrictions. It is setting a kind of ban, but the restriction is that now the companies will not be able to import laptops and computers. For that they have to take a separate license. Now let’s see what will be the effect of this decision of the government.

 

Whats Wrong

The Government of India Ministry of Commerce and Industry Department of Commerce Directorate General of Foreign Trade took decisive action by imposing immediate restrictions on the imports of Laptops, tablets, and personal computers on Thursday, 03 August, with the primary objective of of promoting local manufacturing. According to the notice shared by Indian government, these products can now only be imported if a valid licence for restricted imports is obtained. Their imports would be allowed against a valid licence for restricted imports, the notice said.

Few Exceptions

The new notice issued by the Directorate General of Foreign Trade does allow for exceptions. These are:- it’s important to note that imports under baggage rules for these items are not affected by these restrictions. In other words , people can bring laptops etc from abroad for their personal use. Additionally, the restriction on import licencing is waived for quantities of up to 20 pieces per consignment for specific purposes such as research and development, testing, bench marking, and repair.

Significance

The sudden move means that companies like Apple, which sells Macbook as well as Mac mini, Ipad’s and other computers, will have to immediate effect to stop importing these gadgets in India.

The same rules also apply to companies like Lenovo, HP, Asus, Acer, Dell. Samsung and other that roo sell laptops and personal computers in India after importing them from abroad.

Most of the laptops and personal computers sold in India are manufacturing or assembled in China, and with this new rule the Government of India might be hopping to shift some of this manufacturing and assembling to India. This is similar to what the country has achieved with smartphone manufacturing.

Pushing Make in India 

This move align with India’s ambitious vision to established itself as a global manufacturing hub, focusing particularly on the electronics sector. In fact, the Indian government is trying to boost local manufacturing across sectors, ranging from automobile to technology. By curbing imports of these devices, the government aims to reduce reliance on foreign markets and encourage the growth of local manufacturing capabilities.

What About the Price After Banned of these Laptops?

Although, in short term – or at least until companies apply for and obtain special permits bring laptops into India.

The import restriction is likely to lead to an increase in the price of laptops, computers, Macbook, and Mac mini in the Indian market.

In the last quarter (April-June), electronics imports, which included these three items, amounted to $19.7 billion, marking a 6.35% increased compared to the last year. The move’s spirit is to push manufacturing to India. It’s not a nudge, it’s a push he said.

However, this move may pose challenges for companies like Dell, Acer, Samsung, Panasonic, Apple, Lenovo HP. These firms are major players in the Indian market and heavily rely on imports, particularly from countries like China, to meet consumer demands.

In light of these restrictions, companies without existing local manufacturing facilities in India might need to establishing new production units within the country to operate effectively in India.

Boost to Indian Companies ?

The move may also help companies like Reliance, which launched JioBook just five days ago, and other Indian companies.

Although these companies are likely to import their laptops from China, the move is still likely to help them because local companies may find it easier to get the import exemption licence.

Lenovo, Apple Macbook prices to increase ?

While the implication of the imports restriction on laptops will be clear in the coming days, it is safe to say that the prices of the current laptops that are out in the market will increase. This is because, in the short run, the import restriction is demand and less supply.

Even if companies like Apple and Lenovo do not change the prices of their existing laptops that are already in the Indian market, the import restriction is likely to impact the sales an d discounts that retailers and companies offer from tome to time. With demand being higher than supply, the retailers may have no incentive to offer any discoutns on the laptops.

Conclusion

Although in the long term, if and when companies like Apple and Lenovo start local manufacturing or assembling the prices of laptops and computers in India may come down again. It is worth noting that India has announced import restrictions only on finished laptops and computers. The parts of these machines can still be imported freely.

 

 

 

 

 

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