India Reportedly Plans to Reimpose Import Controls on Laptops and Tablets

India Reportedly Plans to Reimpose Import Controls on Laptops and Tablets

Recent reports suggest that India is once again planning to implement import control measures on laptops and tablets, causing concern among major computer exporters. Local sources indicate that, following the expiration of the previous regulations in September 2023, India plans to introduce a quota-based import authorization system.

Reports state that India's Ministry of Electronics and Information Technology has asked 27 IT hardware manufacturers, who are applying for exemptions, to implement a production-linked incentive scheme to encourage local manufacturing. Applicants are required to submit monthly reports detailing their progress in local manufacturing of laptops, all-in-one PCs, servers, and ultra-small form factor products.

Insiders revealed that the ministry is currently reviewing the local manufacturing progress of some companies. It will decide whether to impose quotas on enterprises based on last year's import volume, the average volume over the past three years, and domestic manufacturing and export conditions, to limit computer imports.

It is understood that India is a signatory to the World Trade Organization’s 1996 Information Technology Agreement (ITA-1), which prohibits the imposition of import tariffs on products covered by the agreement. The reaction of India’s trade partners to the potential quota-based import system remains to be seen.

During the Import Licensing Committee meeting held on May 21, China and Japan expressed concerns about India's import control measures for IT hardware products. Previously, the United States also voiced similar concerns, adding that it would continue to monitor India's implementation.

In August 2023, India abruptly announced import controls on personal computers (PCs) and related products, a move that faced strong opposition from major computer manufacturers. Subsequently, the Indian government decided to postpone the implementation of this plan.