Laptop Manufacturers Convene with Ministry of Electronics and Information Technology to Discuss Import Regulations: Read More
As PC and laptop manufacturers demand the government to reconsider its decision on import license requirements and quotas, industry stakeholders have met IT ministry officials to seek solutions to the issue.
The meeting discussed proposed changes such as linking the value of IT equipment imports to local manufacturing and export value of its electronic products, according to sources.
Friday’s meeting was called to give suggestions on how the proposed import management system should work and get feedback from stakeholders.
A new meeting will probably be organized next week, where the discussion on the topic will be continued.
Last month, the India Cellular and Electronics Association (ICEA) wrote to the IT Ministry asking the government to reconsider its decision on the import license requirement and quota, which was extended by three months till October 31, fearing that this could lead to higher prices of consumer electronics products as companies are not yet prepared to manufacture computers, laptops and servers on a domestic scale.
The letter stated that an overarching factor that should be considered “to avoid disruption of the supply chain until domestic production increases” is that “a reduction in supply or even a reference will lead to hoarding and market distortion”.
This, in turn, can increase consumer prices, “which adversely affects not only key stakeholders like students, but also those who are at the growing core of the digital economy, i.e. start-ups, IT and ITES companies, BPOs”.
The industry is seeking a respite of at least nine months after the release of PLI for IT equipment.
“The government may reassess the investment pipeline and supply situation before inviting the industry to discuss whether further policy action is needed at that stage. It may be too early to assess the full impact of the new system before then,” according to the letter.
Regarding servers, ICEA has received feedback that companies in the industry want to reconsider their inclusion in the proposed measure.
The State Council previously postponed its decision to limit the import of certain laptops and computers to November 1, giving companies three months to import.
After November 1, no entity will be allowed to import laptops, computers and related products without a license.
IT hardware PLI 2.0 has collected applications from 40 companies, including global and domestic ones. The incremental production under the scheme is expected to be around Rs 3.35 crore.
