India's IT hardware import registration plan
Rajeev Chandrasekhar

India's IT hardware import registration plan

Indian government plans IT hardware import registration system

India's proposed IT hardware import registry

The Indian government has conveyed its intention to introduce a registration system for IT hardware imports during the current fiscal year. This proposed system aims to monitor the origin and value of imported devices, without imposing quotas or licensing requirements, providing relief for major tech giants.

In the immediate term, the government plans to focus on tracking the origin and value of imported devices as part of an import management system. This approach allows companies to meet market demand without strict limits on quantities. Quotas and additional compliance measures may be introduced in subsequent stages or in the next financial year.

Industry stakeholders meeting

This significant development was shared with industry stakeholders during a meeting chaired by Rajeev Chandrasekhar, the Minister of State for Electronics and Information Technology, on September 8. The meeting included representatives from tech leaders like Apple, Dell, Samsung, HP, and industry associations.

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The government is keen on the success of the PLI for IT hardware 2.0 scheme, which encourages local manufacturing. However, with many companies set to begin manufacturing under the scheme from April 1 next year, there is a need for imports to bridge the supply gap.

Extended implementation deadline

Earlier, the Directorate General of Foreign Trade (DGFT) had categorized certain IT hardware imports as restricted, requiring licenses due to security concerns. However, in response to industry concerns, the government extended the implementation deadline from August 3 to November 1, 2023.

The government has also reassured companies of its support for local manufacturing, as industry executives express concerns about potential supply constraints and price hikes. Despite these challenges, demand for IT hardware has yet to fully recover to pre-pandemic levels, following a more than 25% decline in the previous fiscal year.

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