The trade regulator has revamped its online portal, which is already utilized for importing semiconductor chips and steel, for placing Import orders for laptops, tablets, PCs, and servers, individuals knowledgeable about the developments said, requesting anonymity. The website was presented to all IT hardware manufacturers earlier this week, one of the individuals said.

“DGFT’s existing portal has been updated to incorporate IT products, and companies must register on it to bring the goods into the country. Some of the companies raised the concern that the government must ensure that there is no disruption at the ground level when the goods start arriving,” the person said, declining to disclose their identity.

Industry executives have emphasized the importance of sensitizing customs field units to the new system and of the government issuing a set of frequently asked questions that can assist the industry in ensuring compliance locally as well as throughout the supply chain that may extend beyond India, a second person said, also seeking anonymity.

The import management system will be put into effect during the peak of the festive season, which broadly spans the period from October to December.

Industry insiders stated that retailers have already begun stocking products in advance in anticipation of festive demand and to avoid any potential obstacles after 1 November.

“If the imports of laptops face any disruption from 1 November, retailers and brands would end up losing actual revenue from the potential sales during the festive season. Therefore, it is crucial for the import management system to operate flawlessly. Goods should not get stuck at ports due to lack of clarity from the Centre,” a senior industry executive said, requesting anonymity.

While the import management system will come into effect from 1 November, companies that are already importing laptops, servers, and other IT hardware into the country will continue to do so without any restrictions on the quantities for the next 11 months. DGFT will begin imposing quotas on the quantities that can be imported from 1 November 2024, which is likely to be 5% lower than the previous year’s imports, and increase these restrictions by 25% each year over the next three to four years.

“The intention is to reduce our reliance on imports and encourage companies to manufacture in India. The import management system will monitor the origin of the goods. Goods from countries that India is not comfortable with will be prohibited,” a senior government official said earlier.

While companies such as Dell, HP, and Lenovo already produce large quantities of their laptops in India, others that sell lesser numbers in the market import most or all of their products. The imports of laptops from China are among the highest in India.

The Global Trade Research Initiative (GTRI), a think tank, mentioned that global firms may feel uneasy about the import restrictions as they will obligate companies to invest in India to maintain their current business level.

“A few countries have voiced their opposition. However, as one of the world’s leading economies, India must navigate its policies independently. It is noteworthy that the US and the EU (European Union) have taken more rigorous measures to pursue their own self-interests,” GTRI said in a note.

The case for local laptop manufacturing in India is strong. China dominates the PC and laptop market, holding an impressive 81% share worth a staggering $130 billion as of 2022.

“Such excessive dependence on one country poses a future supply risk, as covid has demonstrated. In this context, India’s efforts to bolster local production of mobile phones, laptops, etc., are heading in the right direction. However, India must avoid incentivizing superficial shell assembly companies,” the GTRI note further stated.

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Updated: 29 Sep 2023, 12:24 AM IST