The Indian government is reportedly planning to limit imports of laptops, tablets and personal computers. According to a report in Reuters, that is said to quote two government sources with direct knowledge of the matter, the move is to push companies such as Apple to increase domestic manufacturing. The new restrictions may come into place after January 2025.
India’s current Import Management System (IMS) for IT hardware products, including laptops and tablets, was last year extended until December 31, 2024. The system requires companies to register the quantity and value of their imports. Importers will need to apply for new authorisations to import these products starting January 1, 2025. The IMS was launched in November 2023 to monitor imports, encourage local production, and ensure a trusted supply chain.
The government has long emphasised the need for “trusted sources” for electronics and communication devices amid growing concerns over cyberattacks and data theft. India will implement mandatory testing of “essential security parameters” for all CCTV cameras from April 2025.
What and why of the likely new laptop import rules
The government is considering minimum quality standards under its ‘compulsory registration order’ for laptops, notebooks and tablets, as one of the ways to weed out low quality devices, the officials said.
“We are working on such restrictions as global treaties stop us from any tariff action on laptops and tablets. It leaves us with few policy options to limit imports,” the second official said.
The proposed restrictions could significantly impact the IT hardware market in India. The industry is dominated by the likes of HP, Dell , Apple, Lenovo and Samsung, with two-thirds of Indian demand being currently met through imports, a significant amount from China. India’s IT hardware market, including laptops, is estimated at nearly $20 billion, of which $5 billion is domestic production, according to consultancy Mordor Intelligence.
Similar import restrictions were withdrawn last year due to backlash from companies and lobbying efforts from the United States. However, the government has since monitored imports closely and is now seeking to implement stricter measures.
What is the current laptop registration system
While the government believes that the industry has had sufficient time to adapt, it reportedly remains open to consultations with stakeholders and may delay the implementation of restrictions if necessary.
A new import authorisation system is being developed, requiring companies to obtain prior approvals for their imports. This would replace the current system, which allows for unrestricted imports after online registration. Under the current regime, laptop importers are free to bring in as many devices after an automated online registration.
The Indian IT hardware market is dominated by companies like HP, Dell, Apple, Lenovo, and Samsung, with two-thirds of demand met through imports. The government is considering minimum quality standards to weed out low-quality devices.