India restricts laptop, tablet imports; move a blow for Apple, Samsung?

IN a move that could hit the likes of Apple, Dell and Samsung hard and force them to boost local manufacturing, India on Thursday (3) unveiled its plan to impose a licensing requirement for importing laptops, tablets and personal computers with immediate effect.

While India allows companies to import laptops freely under current regulations, the new rule calls for a special mandate for these products similar to restrictions that the South Asian nation imposed three years ago for inbound television shipments.

According to industry experts, a licensing regime would lead to prolonged wait times for each new model the companies launch and would come just ahead of a festive season in India when sales sour, Reuters reported.

It also said that while the government in its notification cited no reason for the move, it has been promoting local manufacturing under the leadership of prime minister Narendra Modi and discouraging imports under the "Make in India" plan.

The country's electronics imports -- including laptops, tablets and personal computers -- stood at nearly $20 billion in the April to June period, up by more than six per cent year on year.

Counterpoint, a technology market research firm, has estimated that India's laptop and personal computer market will be worth $8 billion annually, with two third of those imported, Reuters added.

Madhavi Arora, economist at Emkay Global, said the plan seems to be "substitution of certain goods that ae imported heavily".

"The move's spirit is to push manufacturing to India. It's not a nudge, it's a push," Ali Akhtar Jafri, former director general at electronics industry body MAIT, was quoted as saying by Reuters.

India has also extended a deadline for companies to apply for a $2 billion incentive scheme in a bid to lure investments in IT hardware manufacturing. It is key to the South Asian nation's ambitions to emerge as a powerhouse in the global electronics supply chain, with the annual production target being $300 billion by 2026.