Industry players upbeat over import curbs on laptops, tablets

The Central government has decided to impose import restrictions on laptops, tablets and certain types of computers. The restrictions have been implemented with immediate effect. Going forward, licences will be required for these products to be brought into the country and sold to consumers. 

The government has imposed restrictions for security reasons and to promote domestic manufacturing. While the move will encourage the growth of local manufacturing capabilities, it will also pose a challenge for companies like Dell, Acer, Samsung, Panasonic, Apple, Lenovo, and HP as they rely on assembly abroad. 

Industry players upbeat 

Industry players seem to be happy with the decision and appreciate the government for pushing indigenous electronics manufacturing in the country and also helping in achieving the Make-in-India vision. According to Sagar Gupta, Director, Ekkaa Electronics, the government's move will further cement India's position in electronics manufacturing.

"The Government's move to restrict the import of personal computers and tablets will give a big boost to local manufacturing. This move will further cement India's position in electronics manufacturing in the country and establish itself as a global manufacturing hub. This is an ideal opportunity for India to showcase its technological prowess in manufacturing high-end electronic devices which are on par with global standards at competitive price points," Gupta told ZeeBiz.com.

However, Gupta also feels that steps like limiting high export duties and encouraging private-government collaboration will further accelerate the pace of electronics manufacturing within the country,

Echoing the same sentiment, Arjun Bajaj, Director - Videotex, said that the country can achieve self-reliance or "Atma Nirbhar" in manufacturing electronics products by reducing the reliance on imports.

"This decision highly encourages building the whole manufacturing ecosystem in the country. Promoting locally manufactured electronics will boost the economy, create jobs and reduce dependence on foreign imports. Overall, it shall build a comprehensive approach to strengthen the electronics manufacturing ecosystem in India, ensuring a self-sufficient and thriving industry," Bajaj said.

Bajaj also said that the government should also focus on the localisation of display fab and semiconductor fab within India

What will be the impact of the decision?

While companies like HP and Lenovo have already started local production of some of their laptops, Samsung recently said that it is manufacturing tablets in India. However, the industry comprises around 12 million units and the restrictions on import may lead to some short-term supply. 

"The government's move is aimed at promoting domestic production and reducing dependence on imports. The industry comprises around 12 million units, and this restriction may lead to some short-term supply disruptions, especially for brands like Apple, HP, and Lenovo. Moreover, with the festive season approaching, a significant period for sales, the industry may face challenges in meeting demand," Research Director of Counterpoint Research Tarun Pathak was quoted as saying by PTI.

A shortage in supply may even lead to an increase in prices in the short term.