Laptops and tablets import will now be banned if the company importing them doesn't have the necessary license. This is what was done with the TV imports back in 2020. The licensing requirement is definitely going to hurt you and the businesses. How? Let me explain.
How Will Laptop and Tablet Licensing Hurt You and the Businesses?
Until now, companies could import their latest models of laptops without any licensing requirements to India and deliver them to you (the consumer). This meant that the newly launched models could arrive in India in no time and could be delivered to you at a lower cost. However, with the licensing regime, companies would have to first acquire the license/permission to bring a certain laptop or a tablet, which would certainly require money and other costs such as time and then deliver them to you.
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This development would definitely hurt the business of companies such as Samsung, Dell, Apple, and more companies. These companies not only sell laptops but also tablets within India by importing them. You will now see prolonged wait times in India for each of the new laptop or tablet model that launches for the global market because of the requirement of licensing. This would hurt the businesses as this decision comes ahead of the festive season when the demand for electronics usually surges.
Why Did the Government Make Such a Move?
The government made licensing necessary for the laptops and tablets imported into India to ensure that local manufacturing can be boosted. The government basically wants the big companies to manufacture or assemble within India to cut the need for import licensing. Many smartphone makers are already making phones within India.
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Under the PLI (Production Linked Incentive) scheme, the local manufacturing ecosystem has received a major boost. This decision by the government may seem distasteful to many in the short term but can yield great benefits for the country's economy in the long run. Local manufacturing by giants such as Samsung and Apple for their tablets and laptops would create more jobs but would also add to the economy of the country when these companies start seeing India as a place from where they can also export to other countries.
It is worth noting that two-thirds of the laptops are imported into India (according to Counterpoint Research). This means that it is a category that relies heavily on imports. This is a place where local manufacturing can add a huge boost to the country's economy.
Security Concerns
The local manufacturing push also addresses India's security concerns. India doesn't want to rely on imports from countries such as China anymore. That is why it is focused on reducing imports and making more products locally.
"We believe the government’s decision to curb the laptop, tablet, and computer imports is progressive and has the potential to boost indigenous electronics manufacturing in the country and also help in achieving Make-in-India vision," said A Gururaj, Managing Director, Optiemus Electronics Ltd.
