On August 3, the Indian government announced restrictions on the import of laptops, tablets, personal computers, ultra-small form factor computers, and servers. However, certain use cases have been exempted from these restrictions to ensure smooth operations in essential areas. Individuals can import one laptop, tablet, personal computer, or ultra-small form factor computer through online portals, couriers, or post without any limitations.
The restrictions do not apply to imports made under baggage rules, as stated by the Directorate General of Foreign Trade in a notification. Additionally, an exemption from import licensing has been granted for up to 20 of these items per consignment for purposes such as research and development, testing, benchmarking, evaluation, repair and re-export, and product development.
The government has specified that imports will be allowed solely for the stated purposes, and the imported goods should not be sold. After fulfilling the intended purpose, the products must either be destroyed beyond use or re-exported, as mentioned in the notification.
It’s worth noting that the import of these electronic goods is permitted when they are considered an essential part of a capital good. This move comes amid pressures on India’s trade balance, with the merchandise trade deficit surpassing $20 billion in both May and June.
During April to June, India’s merchandise imports saw a decline of 12.7 percent compared to the first quarter of the previous year, while exports experienced a more substantial decline of 15.1 percent. Despite the overall decrease in imports, the import of electronic goods has increased by 6.3 percent year-on-year during the same period, reaching $19.76 billion. Electronic goods remain India’s largest import category after petroleum products.
In contrast, the export of electronic goods from India has surged by 47.1 percent in April to June, amounting to $6.96 billion, according to the latest available data. The government’s move aims to regulate the import of electronic items to curb the trade deficit and promote domestic production.
