Import relief: IT hardware cos get one-year leeway
₹17,000 crore over six years. Spokespeople for Meity, HP, Dell, Apple, and Lenovo did not respond to queries as of Friday evening.
Companies will choose between FY24 and FY25 to begin availing of incentives under the scheme. The government expects to draw investments of ₹5,000 crore, generating 75,000 direct jobs and incremental production worth ₹4.7 trillion.
“The government has assured that there will not be any supply chain disruptions, which will also help in ensuring that companies wanting to build their local manufacturing capacities face any hiccups," a third person aware of the meeting details said. India plans to introduce the import management system to permit the import of laptops, servers and other IT hardware products from trusted jurisdictions.
Imports from non-trusted jurisdictions will be limited to a certain number of units, Rajeev Chandrasekhar, minister of electronics and IT, said in an interview last week. India first proposed imposing restrictions on imports of IT hardware products in the first week of August but delayed the implementation after opposition from the industry, which argued that the sudden stoppage would impact consumers and raise prices.
Many companies based in the US also sought government-backed intervention in putting a stop to the import restrictions. Notably, in a meeting with commerce minister Piyush Goyal last month, US trade representative Katherine Tai also raised concerns that stakeholders should be engaged in the policy regarding import licensing requirements and the move should not adversely impact US exports to India."Exciting news! Mint is now on WhatsApp Channels
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