Global tech firms seeks clarity from government on laptop import policy as deadline nears

On August 2023, India proposed restrictions on free import of laptop. However, rolled it back after facing severe criticism from the industry

An industry body representing major technology companies on August 22 sought clarity from the government on its import policy for laptops, personal computers and tablets as the current regulations run out on September 30.

With barely a month left for the import authorisation regime for computer products, the Information Technology Industry Council (ITIC) has urged authorities to release draft guidelines for public feedback ahead of the deadline.

"It is critical that the government again take actions to enable early stakeholder engagement to ensure these critical goods remain available in India and to prevent far-reaching unintended consequences on key sectors," ITIC said in a letter, a copy of which has been reviewed by Moneycontrol.

In the letter to ministry of electronics and information technology (MeitY) secretary S Krishnan, ITIC stressed on a smooth transition and adherence to international trade norms, warning that an abrupt shift could disrupt vital sectors reliant on electronics goods across India.

Also read: What is the new authorisation regime for import of laptop, tablets, and PCs?

ITIC's members include laptop, PC and tablet makers such as Apple, Dell, Google, HP, Lenovo, Microsoft, Toshiba.

On July 31, Moneycontrol reported how India's policy around laptop imports was in a limbo as no decision had been taken on returning to the original licensing regime.

While the IT ministry was undecided on going back to the original plan of a licensing regime, the commerce ministry was more certain of the need for such a system, sources told Moneycontrol.

The letter

"As computers are used across all aspects of the economy, India’s policy has a profound impact on many stakeholders, including local and foreign firms doing business or manufacturing within the country," Kumar Deep, country director of ITIC India wrote in the letter to the IT ministry.

The government should issue upcoming guidance in a draft form and give adequate opportunity to stakeholders to provide feedback before it formally publishes the guidelines to “reduce unintended consequences”.

“In the event of a policy change, the government should also provide a reasonable transition time period," the letter said.

"In reviewing whether the IMS (import management system) needs to be updated or replaced, ITI continues to urge the government to select a path forward that meets India’s objectives while facilitating foreign investment and complying with international trade obligations and norms," it added.

The Information Technology Industry Council is also referred to as ITI.

What happened earlier

In August 2023, the government announced plans to restrict the import of laptops, tablets, personal computers and similar devices. The decision was aimed at boost opportunities for domestic manufacturers, as India heavily relies on imports for these products. The aim was also to ensure a trusted supply chain for such items.

The policy faced stiff opposition from global tech giants such as Dell, Acer, Samsung, Panasonic, Apple, Lenovo and HP, who argued it would harm their operations.

Responding to industry concerns, the government rolled back the restrictions the next month, extending the free import window by a year to September 2024.

In place of the licensing system, the government introduced an import management system that required IT hardware companies to register and provide detailed data on their imports. MeitY is analysing this data to determine future policy.