Govt considers extending laptop import rules as September 30 deadline nears

The import authorisation system, introduced in October 2023 to monitor imports, has already led to a decline in imports of seven IT hardware products, including laptops, personal computers, and tablet

India is considering an extension of the import authorisation system for laptops and other IT hardware products as the September 30 deadline nears.

The Ministry of Electronics and IT has recommended prolonging the system, but a final decision is pending as discussions with the Ministry of Commerce and Industry are still ongoing, the Economic Times reported citing officials.

The system, which was introduced in October 2023 to monitor imports, has already led to a decline in imports of seven IT hardware products, including laptops, personal computers, and tablets. The imports dropped to $8.4 billion in 2023-24, down from $8.7 billion in the previous fiscal year, with China holding a 58-60 per cent share.

MeitY is considering extending the deadline, but negotiations are still in progress, the news report quoted an official as saying.

The same official added that IT hardware imports reached $8.4 billion in 2023-24, below the authorised amount of approximately $9.5 billion, with most shipments originating from China.

In October last year, the government implemented an import management/authorisation system for laptops, personal computers, and certain other IT hardware products. The system is designed to regulate inbound shipments without disrupting market supply. Importers are permitted to apply for multiple authorisations, which remain valid until September 30, 2024, covering any number of consignments until that date.

On November 1, 2023, the government approved over 100 applications, including those from Apple, Dell, and Lenovo, allowing imports of nearly $10 billion worth of IT hardware products on the first day of the new system's rollout.

The licensing regime covers laptops, personal computers (including tablets), microcomputers, large or mainframe computers, and certain data processing machines, to ensure a reliable supply chain for India.

In 2022-23, India imported $5.33 billion worth of personal computers, including laptops, down from $7.37 billion in 2021-22.

In a report published in May, Business Standard highlighted that five months after the import monitoring system was introduced, inbound shipments of personal computers, including laptops and tablets, from China surged by 47.1 per cent to $273.6 million in March. 

In contrast, imports from Singapore dropped by 63.9 per cent to $12.2 million, while shipments from smaller players like Hong Kong ($33.65 million) and Taiwan ($8.21 million) increased by 39.1 per cent and 61.3 per cent, respectively.

After the monitoring system for electronic hardware imports went live in November, imports from China fell by 14 per cent, with an overall decline of 17.2 per cent.

In March, China’s share in India’s total imports of these products stood at 81.6 per cent, while it accounted for 77.7 per cent for FY24.