India has decided to impose restrictions on PC manufacturers such as Dell, HP, and Lenovo in an attempt to promote in-house production.
India Sticks By Its "Made in India" Motive, Plans to Reduce PC Imports and Develop Local Facilities
Nikkei Asia reports that India has now set up a condition for companies to acquire an "import license" from the government. While this move aims at making India a self-subsistent nation, it can negatively impact the tech industry. Before this policy, companies could directly import products such as laptops and hardware components without any hindrances. However, now they would need to go through lengthy processes, resulting in more waiting times for businesses and consumers.
As highlighted by the source, India's tech imports for the April-June timeline reached up to 19.6 billion dollars, an increase of 6.25% YoY. Every country aims to reduce import bills, and with the recent wave of "Made in India" products initiated by Prime Minister Narendra Modi, this new policy seems relevant. Furthermore, introducing the new "licensing" policy will also benefit local industries, and it is reported that Dixon Technologies (an Indian company for EMS) witnessed a 7% rise in share after the news of the policy.
Companies like Acer, LG Electronics, Lenovo, and HP will now need to go further steps ahead to facilitate their consumer base within the country. The government has also introduced PLI (Production Linked Incentive) scheme in India, creating a competitive environment amongst companies to grow their local manufacturing facilities. India has also imposed import restrictions on mobile manufacturers, promoting in-house production, with a prime example being the rapid expansion of retail chains and facilities of the Cupertino giant (Apple) in India.
While the exact terms and conditions of the policy haven't surfaced yet, it is predictable that affected companies will start working on local production, which will make India one step closer to its aim of $300 billion worth of annual production by 2026.
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