The electronics hardware industry in India is currently seeking clarification from the Ministry of Electronics and Information Technology (MeitY) regarding future policy plans for imports of certain computer products. In a letter addressed to MeitY Secretary S Krishnan, the industry has urged for increased stakeholder engagement to ensure that these goods remain available in India without causing any unintended consequences on key sectors.
Earlier in August 2023, the government had imposed restrictions on certain IT hardware goods, which raised concerns among domestic and foreign firms. In response to these concerns, the government tweaked the curbs on imports of laptops and computers in October 2023. Importers were allowed to bring in shipments of this hardware from overseas with just an ‚authorization‘ upon detailing quantity and value.
The Import Management System (IMS) for ICT hardware products, which was launched last year, is set to end on September 30, 2024. The government aims to monitor shipments of laptops, tablets, and computers into the country without disrupting the market supply or creating a cumbersome licensing regime. Importers are allowed to apply for multiple authorizations, valid until September 30.
The ITI Council, representing the industry, emphasized the importance of early stakeholder engagement to prevent any far-reaching unintended consequences on key sectors. They requested that the government issue upcoming guidance in draft form and provide adequate opportunity for stakeholders to provide feedback before formal publication. The industry also stressed the need for a reasonable transition period in the event of a policy change.
The Council expressed concerns about reports indicating that the government may replace the IMS with a quota system, which could cause disruptions and unfairly block market access for many firms. They urged the government to clarify its goals and proposed policy roadmap, boost transparency, and engage stakeholders in the policy process to facilitate a constructive path forward.
As computers are used across all aspects of the economy, India’s policy on imports of computer products has a profound impact on many stakeholders, including local and foreign firms operating in the country. It is crucial for the government to work closely with industry stakeholders to ensure that the policy framework supports India’s objectives while facilitating foreign investment and complying with international trade obligations and norms.
In conclusion, the electronics hardware industry in India is seeking clarity and engagement from the government to ensure a smooth transition and prevent any disruptions in the market. By working together with stakeholders and fostering transparency in the policy process, the industry aims to contribute to a constructive path forward for the import of computer products in India.