Import curbs imposed on PCs, laptops

MOVE 'ILL-TIMED': INDUSTRY | To boost local manufacturing

- MUKESH JAGOTA

THE GOVERNMENT ON Thursday imposed licensing requirements for imports of laptops, tablets, personal computers and servers with immediate effect, as it sought to curb rising inbound shipments from countries like China and boost local manufacturing.

While the move may make it compelling for the likes of Apple, Dell and Samsung to access the fastgrowing Indian market for these items by manufacturing them locally, the tech hardware industry called the move ill-advised and premature, and felt that the government should have waited at least till a local production ecosystem was in place. Currently, about 90% of the domestic demand for these products are met through imports.

The government resorted to quantitative curbs, as it would have been difficult for it to raise tariffs on import of these products given the country's zero-tariff commitment under the multilateral information and communication technology (ICT) agreement. The European Union (EU) had dragged India to the World Trade Organization's dispute settlement body against the tariff increases earlier on mobile phones and certain electronic components.

"Import of laptops, tablets, all-in-one personal computers, and ultra small form factor computers, servers... is 'restricted'with immediate effect, according to a notification issued by the Director General of Foreign Trade (DGFT).

The share prices of Dixon Technologies and Optiemus Infracom, contract manufacturers for electronic goods, rose by 7.62% and 8.76%, respectively, on the NSE on Thursday.