Laptops and tomatoes: Changes that show how little has changed

New import curbs will adversely impact service-sector growth while our tomato supply shock lacked a processed-food buffer

- INDIRA RAJARAMAN

Severe import restrictions on hitherto freely importable laptops and personal computers were announced in August to come into effect on 1 November. There was no discernible adverse exogenous event that could have triggered this sharp policy change.

An example of a purely adverse exogenous event was the tomato supply shock starting July, preceding a generalized explosion in vegetable prices, although the severity of the shock can be traced to policy failure there too (on which more below).

Imports of laptops, personal computers and other items in category 8741 of the HSN (Harmonised System of Nomenclature) will be restricted, by notification 23/2023 dated 3 August from the Directorate General of Foreign Trade (DGFT), hedged with exemptions which are such a startling throwback to pre-1991 import controls that I initially thought it might be fake news. Starting 1 November, bulk imports will be open only to holders of valid import licences. Licence-free imports will be permissible for only one unit at a time. Is that one unit per buyer per year; one unit per lifetime of the buyer; or one unit until proof of the initial imported unit having crashed? R&D laboratories will be allowed a consignment of up to 20 units, which requires monitoring of whether those are being used in the lab or re-sold to individuals. Import under baggage rules will be allowed, which means non-resident Indians will be besieged by their resident Indian families and friends to bring a laptop every time they visit.