Govt likely to extend import regime for laptops, IT hardware products

The system kicked in on November 1 to promote domestic manufacturing of these goods and reduce dependence, especially on China

The Union government may consider extending the import management system for laptops and other IT hardware products for a few months, people aware of the matter said. The current deadline for the system ends on September 30.

An extension, if agreed upon, would provide clarity and stability to the industry, particularly at a time when the domestic manufacturing ecosystem for these products is not yet robust.
 

The system was introduced on November 1 last year to boost domestic production and reduce reliance on imports, particularly from China. It covers laptops, tablets, all-in-one personal computers (PCs), ultra-small form factor computers, and servers. The government also wanted to ensure a trusted supply chain for electronics in light of growing cybersecurity concerns.
 

While announcing the end-to-end online system last year, the government had said it would study data before making a decision on how to take it forward.

 

Officials from the commerce department and the Ministry of Electronics and Information Technology (MeitY) have been holding meetings to determine the future of the system.

“Several rounds of meetings with key industry representatives, including individual companies, have taken place over the past few weeks,” one of the persons cited above told Business Standard, adding that a final decision on this would be taken at the earliest.

The government is unlikely to shift to a quota-based system, which could include a quota or quantitative restrictions on the import of laptops and other IT hardware products, as such a move could raise issues at the World Trade Organization (WTO). The current data collection through automatic licensing is compatible with WTO norms. Additionally, discussions are underway about the possibility of ensuring imports from ‘trusted geographies’.

A commerce and industry ministry spokesperson said the Directorate General of Foreign Trade was still in consultation with MeitY. “A decision on this will be taken after assessing the objectives set out in implementing the import management system,” the spokesperson said in response to Business Standard queries.

“The nudge has helped to a certain extent. The main idea is to develop a manufacturing ecosystem in India, with the success of the IT hardware 2.0 scheme. The government hopes to see greater participation from large companies, including Dell, HP, among others. These companies will start production April 2025 onwards,” another person said.

Industry officials said it would be rather prudent to extend and continue with the existing system since the domestic supply is not in place. If the government plans significant policy changes, the current system should continue for an extended period to ensure structured transition, an industry official said.

Last August, the government announced plans to issue licences for import of IT hardware products. However, India stepped down from its earlier plan and introduced a new ‘contactless’ import management system amid massive reservations from companies, industry lobby groups, and key trade partners.

Under this system, import permits are issued entirely online, allowing importers to apply for multiple authorisations and receive Customs clearance. The government collects detailed data on specific products and monitors imports in consultation with stakeholders.