GOVERNMENT BAN ON LAPTOP, COMPUTER IMPORTS
WHY IN NEWS ?
- India has imposed import restrictions on laptops, tablets, and some types of computers with immediate effect.
WHY DID THE GOVERNMENT BANNED IMPORTS ?
- It will help the country reduce its imports from China (India’s trade deficit with China stood at $83.1 billion in 2022-23).
- It will help the country save millions of dollars in foreign exchange.
- The ban has the potential to create thousands of additional jobs, while enriching the electronics manufacturing ecosystem and foster more research and development (R&D) in the country.
- It will help the country address a large addressable global IT hardware market.
- The move to ban imports is a part of the government’s target of achieving self-sufficiency in domestic electronics manufacturing by 2025–26, and in sync with the country’s aggressive digital push.
IMPACT OF THE BAN:
- Companies would now be required to obtain an import license under the new laws.
- This could cause a delay in the simultaneous release of new PC and laptop models in Indian marketplaces.
- This restriction may drive companies to look into opportunities for local production in order to continue efficiently serving the Indian market.
- Government wants to encourage the domestic manufacturing sector.
MORE ABOUT THE NEWS:
- The approach is in line with the government’s production-linked incentives (PLIs) that has been extended to more than a dozen industries, including electronics.
- The government has extended the deadline for applications for its $2 billion manufacturing incentive plan, which aims to encourage large investments in IT hardware manufacture, including laptops, tablets, personal computers, and servers.
- With this ambitious program, India hopes to produce $300 billion in electronics annually by 2026.
SYLLABUS: PRELIMS, CURRENT AFFAIRS
