India plans laptop import curbs to boost local manufacturing, sources say

India is expected to limit imports of laptops, tablets and personal computers after January, two government sources with direct knowledge of the matter said, a move to push companies such as Apple to increase domestic manufacturing.

This plan, if implemented, could disrupt an industry worth $8 billion to $10 billion and reshape the dynamics of the IT hardware market in India, which is heavily reliant on imports.

A similar plan to restrict imports was withdrawn last year following backlash from companies and lobbying from the United States. India has since monitored imports under a system set to expire this year and has asked firms to seek fresh approvals for imports next year. The government feels it has given the industry enough time to adapt, said the sources, who did not want to be identified as discussions are private.

One of the sources said New Delhi will begin consultations with all sides starting next week. It could delay implementing the import restrictions by a few months if needed, the source added. India’s Ministry of Electronics and Information Technology (MeitY) is working on a new import authorisation system, where companies will have to get prior approvals for their imports, one of the two sources said.

Under the current regime, laptop importers are free to bring in as many devices after an automated online registration.

The industry is dominated by the likes of HP, Dell, Apple, Lenovo and Samsung, with two-thirds of Indian demand being currently met through imports, a significant amount from China. India’s IT hardware market, including laptops, is estimated at nearly $20 billion, of which $5 billion is domestic production, according to cons The government is considering minimum quality standards under its ‘compulsory registration order’ for laptops, notebooks and tablets, as one of the ways to weed out low quality devices, the officials said.

“We are working on such restrictions as global treaties stop us from any tariff action on laptops and tablets. It leaves us with few policy options to limit imports,” the second official said.