The government is reportedly planning to introduce restrictions on the import of laptops, tablets, and personal computers starting in 2025. According to a report, the government may reduce the current import limit by 5% as it aims to bolster local manufacturing.
Citing three sources with the matter, a report by Moneycontrol claimed that further gradual reductions in subsequent years are on the cards. The import data for FY 2024-2025 may be taken as the base for slashing the limit by 5%.
This decision comes after the government extended the free import of these items until December 31 (from September 30). The government's objective is to encourage companies that have received benefits under the Production-Linked Incentive (PLI) scheme to increase domestic production.
Reportedly, the industry has sought further clarification and a formal notification from the government in this regard.
What industry members have to say
The report said that consultations with industry representatives, including major players like IBM, Dell, Lenovo, and various industry associations, have taken place to discuss the proposed changes.
The industry members told the publication that they have been preparing for such an outcome over the last one year. The government has also assured the industry that it aims to ensure a smooth transition to minimise disruption.
To facilitate the process, a new online system will be implemented to streamline import procedures at the customs level, eliminating manual intervention and ensuring a hassle-free experience for importers.
“This new system will operate entirely online with no manual intervention, streamlining the import process at the customs level to ensure a hassle-free experience for importers,” a government official was quoted as saying.
“The government wants to ensure that companies who have promised to apply for PLI, are picking up manufacturing in the country. There is also a significant security interest for the government here, as roughly 70% of these items are currently imported from China and Hong Kong,” the official added.
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