The government has extended the import regime for IT hardware products until December 31. Companies must seek fresh approvals for imports based on new guidelines from January 1.

The current system is only valid until September 30. According to a notification from the Directorate General of Foreign Trade (DGFT), importers will need to apply for new authorisations from January 1, 2025.

The import management system was implemented on November 1, 2023, to promote domestic manufacturing, reduce dependence on countries like China, and ensure a trusted supply chain for electronics in India. Import data will also be closely studied before making future decisions.

This system covers various IT hardware products such as laptops, tablets, all-in-one personal computers, ultra-small form factor computers, and servers.

Last month, there were reports that the government might extend the import management system for a few months due to the underdeveloped domestic manufacturing ecosystem for these products.

In August last year, the government announced plans to issue licenses for importing IT hardware products. However, due to concerns from companies, industry lobby groups, and trade partners, India introduced a new ‘contactless’ import management system in November.

Under this system, the import permit is issued in an end-to-end online format.

Kumar Deep Banerjee, country director of the Washington-based IT lobby group ITI Council, mentioned the need for more clarity on the proposed new import authorisation scheme. He emphasised the importance of robust stakeholder consultation before implementing any new requirements.

Ajay Srivastava, founder of the Delhi-based think tank Global Trade Research Initiative (GTRI) and former trade ministry official, believes that India should stop delaying the implementation of laptop import restrictions. He highlights the potential for India to enforce these measures and boost local production.

According to Srivastava, such restrictions could lead American tech giants like Apple, Dell, and HP, which currently manufacture in China, to set up operations in India.

He also noted that the US has been inconsistent in its approach, imposing tariffs and restrictions on Chinese goods to protect its interests while resisting similar actions by other nations that may affect American companies.

Srivastava emphasised India’s strong case for building its laptop manufacturing capabilities, as China currently controls 81% of the global PC and laptop market, and any disruption there could have international repercussions.

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