Make in India: Curbs on computer imports

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₹17,000 crore production-linked incentive (PLI) scheme for IT hardware to attract makers of laptops, tablets, and other hardware to India. India has also taken several other steps to curb imports from China by introducing quality control orders (QCO). Electronics imports from China was at $27.6 billion in FY23.

“The latest decision to restrict imports of IT hardware appears part of a broader strategic push towards encouraging domestic manufacturing in key sectors, where India is hoping to increase its share in global supply chains. Incentivising domestic and foreign companies to manufacture these goods in India will be the likely next move," said Deepa Kumar, the head of Asia-Pacific country risk at S&P Global Market Intelligence. A government official clarified that the restriction does not mean prohibition, and that imports are allowed but with a licensing condition.

The official notification said that the imports would be allowed against a “valid licence" and is outside the purview of ‘Baggage Rules’ in case of international travel. “This move is primarily to safeguard the security of the citizens. The internet is going to expand in a much faster way.

Digital citizens should have an environment where they are not exposed to machines which might have security risks. Keeping in mind that some of the hardware could potentially have security-related risks and could compromise sensitive and personal data," the official said. Without naming China, the official said sourcing from trusted and reliable partners will be the topmost priority.