In a surprising move, the government of Prime Minister Narendra Modi has imposed restrictions on the import of computers and laptops in India. According to a notice from the Ministry of Commerce and Industry, importers will now need licenses to bring in laptops, tablets, personal computers, and other electronic devices.
Previously, these items could be imported without restrictions. The reason behind this change in rules was not provided by the ministry. However, it aligns with Prime Minister Modi's "Make in India" campaign, which aims to boost domestic manufacturing and generate more job opportunities. This move follows a similar restriction on smart TV imports in 2020.
India's electronic imports in the April to June period amounted to $19.7 billion, showing a 6.25% increase compared to the same period in 2022, as reported by Reuters.
India's emphasis on domestic manufacturing comes at a pivotal moment, especially as companies worldwide seek to diversify their supply chains away from China. With India projected to reach a working-age population of one billion in the coming decade, according to the Organisation for Economic Co-operation and Development, the country's sizeable and youthful labor force becomes an attractive prospect for global companies seeking alternative manufacturing hubs. This shift in focus towards India as a manufacturing destination is driven by the desire to secure crucial supply chains beyond China's borders.
India's push for domestic manufacturing in the tech sector has seen notable progress. Apple, already producing 5% to 7% of its products in India, aims to raise this to 25% according to the commerce minister, Piyush Goyal. Additionally, US chipmaker Micron is investing up to $825 million in a semiconductor assembly and test facility in Gujarat, creating thousands of new jobs.
Despite exiting a joint venture with Vedanta, Foxconn, a key Apple supplier, remains committed to Indian chipmaking. The country's growing manufacturing capabilities and attractive position as an alternative to China for supply chains have sparked interest from global tech companies. These developments signal India's determination to bolster its local tech industry and stimulate economic growth.