Recently a piece of news broke out that the government of India decided to ban the import of products that come under the HSN 8471 code, like computers, laptops, tablets, etc. Despite this news being partially true, the “BAN” word does not suit here and not explains the whole story.
The government of India wants every importer to obtain a license for import devices. This new rule adds certain import restrictions, but it is not import BAN on computers.
Full story- Govt not issued any import ban on computers
Rajeev Chandrashekhar, minister of electronics and IT, said – “India is becoming one of the world’s fastest-growing markets for Digital products, including Laptops, Servers etc.” Definitely, it’s govt objective to provide trusted hardware and system while reducing dependency on foreign countries for manufacturing these types of equipment. Even India has its own National Quantum mission to develop a world-class quantum computer
No need to worry as the new rule will not increase the cost of computers, laptops and other things. All importers need to obtain a license from the central government to import equipment, and that’s it.
➡️India is becomng one of worlds fastest growing markets for Digital products includng Laptops, Servers etc.
— Rajeev Chandrasekhar 🇮🇳 (@Rajeev_GoI) August 4, 2023
➡️India and DigitalNagriks will consume millions of Digital products in coming Techade.
➡️Rapid digitilization / cloudification of our economy AND rapid growth of our… https://t.co/gdMcNnsEUT
Reason behind putting restrictions on imports
There are important reasons that Rajeev Chandrashekhar shared on Twitter- Firstly, making India Self Reliant on crucial electronic product manufacturing. Secondly, to ensure that the devices are from trusted sources to eliminate security issues.
Currently, the majority of these items come directly from China. With this new restriction, the government plans to force companies to shift manufacturing and assembly lines to India. The following steps will not only help in achieving the goal of “Atmanirbhar Bharat” but will also bring new jobs. If the manufacturing of computers and laptops starts locally, then products will get cheaper. Certainly, the government has taken tough measures, but it is far from an Import ban on Computers.
Trade deficit with China is increasing
Smartphone manufacturing or assembling, including Apple, is already shifted locally. The government’s next target is personal computers and laptop manufacturing. Moreover, India’s expenditure on importing personal computers and laptops is increasing year by year, especially with China. In the financial year 2022-23, the country spent over $5.3 billion on imports from China which was $2.9 billion in 2018-19.
And India-China relations, you all know. If anything worst happens between the two countries, China can control or completely ban the export of necessary electronic items to India. Surely, someone would take advantage of this to weaken their enemy.
Transition period and Exceptions added
The government of India has added an exemption layer. For any new rule implementation, there is a transition period for a smooth transition. The same applies here, but some outlets posted half-baked stories, causing panic for a while. Anyone can easily tell that a sudden import ban on computers will be more disastrous for the development of the country, that too when we have zero ecosystems.
Import Exemption includes – R&D, testing, benchmarking and evaluation, repair and return, and product development devices. Apart from this, one PC/laptop/tablet has also been exempted, but the duty will be applicable as before.
Also, any regular importer can apply for an import license and get this license in no time. This move will impact all the major companies like Apple, HP, Lenovo, Asus, Acer, etc. Beware of any fake news of “Import Ban on Computers”