India has backed out from its previous decision to impose import licenses on Laptops, servers, tablets, and personal computers. Previously, the Narendra Modi-led government had announced that the companies will have to apply for licenses to import devices citing national security. The date was extended to November 1 but now the Government has reportedly backed out of the move citing concerns from industry players and companies. Even though the Government will not ban any companies, the officials will keep a close watch on importers. The move was to crack down on illegal imports from China and other countries by evading taxes.
India imports electronic devices such as tablets, laptops, servers, and PCs from China and Taiwan. According to reports, the import from April to June averaged around $19.7 billion, which is very high compared with previous figures. The aim of the Narendra Modi Government is to enhance domestic manufacturing thereby adding additional employment. Moreover, the Government intends to reduce the dependency on countries like China. With a restriction in place, the companies will shift its manufacturing to India, which will improve the employment scenario.
As part of the import licenses restrictions, people will not be able to buy laptop, tablet, desktop, or other electronic devices from a foreign-based online marketplace platform. Previously, tech-savvy bloggers used to buy from Chinese e-commerce chains like AliExpress but now it’s difficult. We checked all the marketplaces such as Gearbest, Banggood and they are not shipping items to India now. The Government had notified that imports made under baggage rules would not fall under these restrictions.
As part of the latest move, companies can now import devices as per the existing rules and regulations. There will be no need to apply for any special import license. However, all imported goods are subject to customs duties and other levies as per the law. The IT ministry is planning to hold consultations with industry leaders and manufacturers to arrive at a consensus. The Modi government is adamant that the imported devices does not compromise national security.
