IT hardware imports surge in August after licensing order
IT hardware imports surged as much as 50% in August from July, ahead of licensing rules taking effect on November 1. Companies advanced procurements fearing a supply crunch, said manufacturers and a leading system integrator that buys from distributors and producers and supplies to enterprises.
The Director General of Foreign Trade (DGFT) put the import of IT hardware, including laptops, PCs and servers, under the restricted category last month, calling for a licence.
The notification, passed on August 3, was amended a day later, deferring implementation to November 1, giving the industry three months to recalibrate. The order, however, has led to fears of supply disruptions and price increases once the restrictions kick in.
August imports exceeded 1.2 million units, up from 800,000 in July, due to increasing orders from enterprise customers as well as original equipment makers (OEMs) that want to ensure adequate stocks during the festive season and for corporate requirements, an expert said.
An industry grouping pegged the import spike at 20-30%.
Both expect September to see another surge as most consignments take four-six weeks to reach India.
Moreover, companies are wary of getting devices made by Chinese companies, fearing that their use may not be allowed by the government in future, said an executive at a global IT hardware company. In the telecom sector, China's Huawei and ZTE are effectively barred from participating in India's 5G deployment.
Lenovo for instance hasn't been participating in government tenders in the past two years. The computer maker didn't reply to ET's queries.
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