India Requires Import Licenses For Private Laptops, Tablets, And Computers

JAKARTA - On Thursday, August 3, India announced that it will impose licensing requirements for imports of laptops, tablets, and personal computers as soon as possible, this move could have a major impact on companies such as Apple, Dell, and Samsung, and encourage them to increase local production.

Current regulations in India allow companies to import laptops freely, but these new rules require special licenses for these products, similar to restrictions imposed by India in 2020 for TV delivery.

Industry executives say that the licensing regime will mean longer waiting times for any new model they launch, and this comes ahead of India's holiday season where sales usually increase.

The government in its official notification gave no reason for the move, but Prime Minister Narendra Modi's administration has promoted local production and reduced imports through the "Make in India" program.

India's electronic imports, including laptops, tablets, and personal computers, reached USD 19.7 billion (IDR 297.6 trillion) in the period April to June, up 6.25% compared to the previous year.

Research firm Counterpoint estimates India's private laptop and computer market to be worth $8 billion per year, with two-thirds of them imported laptops.

"The goal is to "replace some of the items that are imported a lot", said economist Emkay Global, Madhavi Arora.

Apple, Dell, and Samsung have not immediately responded to a request for comment from Reuters on the report. They, along with Acer, LG Electronics, Lenovo, and HP Inc, are some of the main laptop sellers on the Indian market.

A government source who did not wish to be named told reporters that deliveries that had been ordered would be allowed without a license until August 31.

The move is expected to benefit contract manufacturers like Dixon Technologies, whose shares rose more than 7% after the news.

"Spirit of this move is pushing for production in India. This is not a signal, this is a boost," said Ali Akhtar Jafri, former director general at the MAIT electronics industry association.

India has extended the deadline for companies to apply for an incentive scheme worth US$2 billion (Rp30 trillion) to attract investment in IT hardware manufacturing.

This scheme is the key to India's ambition to become a force in the global electronic supply chain, with the country targeting annual production of US$300 billion (Rp4,532.2 trillion) by 2026.

The country has imposed high rates in the past for products such as smartphones to encourage domestic production.

Selain meningkatkan produksi lokal, langkah pemerintah bertujuan untuk mengendalikan pasokan dari China, karena ada kekhawatiran keamanan terhadap produk-produk tersebut, kata sumber pemerintah kedua.

"This restriction will help India import hardware only from "trusted partners," the first government source added.

Half of India's limited items were imported from China, with whom Delhi's relations have deteriorated since border clashes in 2020, which led to several anti-Chinese measures to control investment and trade from Indian neighbors.