Government may extend IT hardware import rules: Report

The government initially announced the system with the intention of reviewing its impact before deciding on its future.

The government is examining an extension of the import management system for laptops and other IT hardware products beyond the September 30, the Business Standard has reported.

The potential extension aims to provide stability and clarity to the industry amid a still-developing domestic manufacturing ecosystem for these products, the report said.

Introduced on November 1, the import management system was designed to boost domestic production and reduce dependency on imports, particularly from China.

Laptops, tablets, all-in-one personal computers (PCs), ultra-small form factor computers and servers are on the import restriction list. The system also aims to ensure a trusted supply chain for electronics amid rising cybersecurity concerns.

While putting the system in place, the government has announced a review to assess its impact before deciding on its future. Since then, officials from the commerce department and the Ministry of Electronics and Information Technology (MeitY) have been engaged in discussions to evaluate its effectiveness and potential next steps, the report said.

Moneycontrol couldn’t verify the report immediately.

“We have conducted several rounds of meetings with key industry representatives and individual companies over the past few weeks,” the report quoted a source as saying. “A final decision on the matter will be made soon.”

A spokesperson of the commerce and industry ministry said the Directorate General of Foreign Trade was in consultations with MeitY. “A decision will be made after assessing the objectives set out in implementing the import management system,” the spokesperson told the business daily.

Industry officials favour extending the system, given the lack of robust domestic supply. The extension would facilitate a structured transition and support the development of the manufacturing ecosystem in India, with hopes of increased participation from major players such as Dell and HP. These companies are expected to commence production from April 2025.

“The nudge has been beneficial, but continuing the current system is advisable to ensure a smooth transition and to support the IT hardware 2.0 scheme,” another source said.