international trade of computers. China and Vietnam both have much greater comparative advantage—and, India’s advantage is greater in mobile handsets than computers.
With the new move, major foreign players such as Dell, Apple, Lenovo, and HP may have to make adjustments to their prices or profit margins in order to compete in the Indian market. In the fiscal year 2022-23, India's electronic goods exports took the lead over traditional commodities, but computer hardware peripherals accounted for only a minor share of 2.2% in the overall electronic goods exports.
Similarly, the latest data from the electronics and information technology ministry indicates that India's computer production makes up just 5% of the overall electronic sector. The government’s move is expected to change this trend.
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