The 14th Ministerial-level meeting of the India-US Trade Policy Forum (TPF) in New Delhi brought forth discussions on India’s import mandates for computers and tablets. During the meeting, US Trade Representative (USTR) Ambassador Katherine Tai raised concerns about the new import requirements and urged India to ensure that related policies don’t hinder trade in the hardware sector.
The joint statement issued after the meeting highlighted Ambassador Tai’s emphasis on the need for India to safeguard a trade-friendly environment, especially concerning computers, tablets, and servers. In August of the previous year, the Indian government had initially imposed restrictions on the import of laptops, tablets, and personal computers, causing a stir among stakeholders. The subsequent deferral of implementation and the introduction of a new ‘import management system’ were noted by Ambassador Tai, who welcomed the move for minimizing the impact on trade.
Ambassador Tai also called for collaboration with Indian authorities to ensure the resilience of supply chains in the hardware sector. Minister of Commerce, Piyush Goyal, cited national security concerns as the rationale behind India’s new import requirements during the meeting. Minister Goyal expressed the country’s commitment to engaging with the US and other stakeholders on the matter, emphasizing India’s objectives, including those related to national security concerns.
The initial move by the Indian government to place laptops, tablets, all-in-one PCs, ultra-small factor computers, and servers in the restricted imports category last August created a significant upheaval in the industry. Global giants sought licenses to comply with the mandates, leading to a plea from many for a deferment due to a cumbersome licensing regime and potential market supply challenges.
The government justified the move on the grounds of national security, citing potential security-related issues in certain hardware that could compromise sensitive and personal data. The initiative aimed at bolstering the local manufacturing industry and attracting global players to the country.
The outcome has seen global Original Equipment Manufacturers (OEMs) seeking opportunities in India, drawn by the incentives offered under the production-linked incentive (PLIs) scheme. Currently, the government has approved 110 out of the 111 applications submitted by companies to manufacture IT hardware products, including industry giants like Apple, Dell, and Lenovo.
