The imports of laptops, tablets and personal computers have been restricted by the government with an immediate effect on 3 August 2023, after the launch of affordable JioBook laptops from Reliance jio. The Ministry of Commerce and Industry said in its recent notification that, “the imports of electronic gadgets like laptop, tablet, personal computers and servers under the category of HSN 8741 would be allowed only for those who obtained a valid license”.
The Directorate General of Foreign Trade clarified that the restrictions will not be applicable to imports made under Baggage Rules, the customs checks that every passenger entering or leaving the Indian border must undergo. Therefore, individuals bringing laptops, tablets, and personal computers as part of their personal belongings will not be affected by the import restrictions. An exemption from the import license for up to 20 items per consignment has been granted by the government, specifically for R&D, testing, benchmarking, evaluation, repair, re-export and product development. But, these imports are solely intended for the mentioned purposes and not for commercial use. The imported products must either be destroyed or re-exported after the deliberate use, mentioned in the ministry’s instructions.
The implementation of this measure has been considered as a direct support to the Centre’s recently renewed production-linked incentive (PLI) scheme for IT hardware. A senior government official emphasized that the purpose of this measure is to encourage companies to increase local manufacturing in India, as the country aims to enhance its domestic production capabilities in the electronics sector.
The primary objective was to support manufacturers of laptops, servers, personal computers and other related products within the country. This push is particularly targeted at reducing the dependency on imports, especially from China, as a significant majority of these segments’ imports originate from the neighboring country. Few amendments were made in the scheme with a budget of Rs.17,000 crores, twice the initial allocation which was approved in 2021.
The timing of the laptop import ban has sparked curiosity as it coincides with the recent launch of laptop by Jio. Jio is known for shaking up markets and making bold moves into new sectors using its extensive resources. With these import restrictions, Jio seems to have an opportunity to benefit, potentially facilitating its entry into the laptop market. Meanwhile, global players like Apple, Samsung, HP, Dell, ASUS and others must navigate through this policy, which requires a comprehensive understanding.
Apple, which is already manufacturing some of its products within the country and has attracted numerous investments from international companies through its manufacturing sector in India. Foxconn, a crucial supplier to Apple, is actively seeking to expand its manufacturing operations in India. Although Foxconn faced a setback in exiting a joint venture with Vedanta Group, the company is determined to continue investing in Indian chipmaking. Foxconn is now exploring government programs that offer subsidies for setting up semiconductor or electronic display production facilities in the country. These developments reflect the growing interest and commitment of global players in India’s semiconductor industry.
Users on X social media platform shared their reactions to the recent announcement of Reliance Jio launching the budget-friendly JioBook laptop in the country. Some users are drawing attention to the timing of events, as they mention the laptop launch on August 1 and the government’s subsequent restriction on importing laptops, tablets, and computers on August 3, indicating a possible connection between these two occurrences.
