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. The industry is urging the Ministry for increased stakeholder engagement to ensure that the market supply of these goods remains stable and to prevent any unintended consequences on key sectors.
In August 2023, the government imposed restrictions on certain IT hardware goods, which raised concerns among domestic and foreign firms. In response to these concerns, in October 2023, the government tweaked the curbs on imports of laptops and computers. Importers are now 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 can apply for multiple authorizations, valid until September 30.
The ITI Council, in a letter to MeitY Secretary S Krishnan, emphasized the importance of early stakeholder engagement to ensure that these goods remain available in India. The Council highlighted the impact of India’s policy on various stakeholders, including local and foreign firms operating in the country.
The industry body suggested that the government issue upcoming guidance in draft form and allow stakeholders to provide feedback before formal publication. They also stressed the need for a reasonable transition period in the event of a policy change. The Council expressed concerns about reports suggesting a quota system may replace the IMS, potentially causing disruptions and blocking market access for many firms.
In conclusion, the ITI Council emphasized the importance of clarity, transparency, and stakeholder engagement in the policy-making process. They stand ready to contribute to this process and ensure that India’s objectives are met while facilitating foreign investment and complying with international trade obligations and norms. It is crucial for the government to work closely with industry stakeholders to address concerns and ensure a smooth transition in the policy framework.