India Imposes Restrictions On Laptops, PCs, but there are fears over rising costs for electronics

The government of India has imposed restrictions on laptops, tablets, and PCs in a move to promote homemade electronics. However, there has been a growing concern over its implication in the market-majorly the rising costs of the same gadgets. Currently, the country has delayed the restrictions till October 31, 2023, to facilitate a swift transition for companies.

As per the ruling, the country has barred the import of laptops, tablets, all-in-one PCs, and small computers under code 8741. The Directorate General of Foreign Trade (DGFT) made the decision which aligns with the Modi-led initiative to promote domestic goods under the Made-in-India scheme.

In addition to promoting domestic goods, the idea is also to encourage foreign firms to start their production in India. In recent times, foreign companies such as Apple, Foxconn, and AMD have announced different investment plans and India wants to capitalize on this growing momentum. And by encouraging companies to divert their manufacturing to India, the country could also counterbalance the deficit it faces with China.

Also read: Zoom to Start its Phone Service in India, Gets Unified License from DoT

Industry fears rising costs for PCs, tablets in India

But the import restrictions mean the prices of PCs and tablets could rise up in India. So far, the government has said that companies that wish to import restricted goods will need to obtain a license. The cost for the license would also be factored in so the costs for the electronics are likely to soar.

Besides, the ban could also impact PCs’ availability as some companies might lessen their shipments while others may entirely stop importing.

In the short term, the ban will affect the IT industry, companies, and consumers. Indian buyers will be paying more for the items while businesses will also have to cope with raised computer prices. The revenue in the IT industry will also come under strain as higher prices for laptops and computers will also translate to higher expenses.

The transition period till October 31 has allowed for companies and consumers to meet their needs. The PCs and tablet ban in India will start from November 01, 2023.

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