IT hardware import rules may get extended

The government is considering an extension of the import management system for laptops and other IT hardware products beyond September 30, as per report. The extension is aimed at providing stability and clarity to the industry amid a still-developing domestic manufacturing ecosystem for these products.

First introduced on November 1st, the import management system was designed to boost domestic production and reduce dependency on imports.

Laptops, tablets, all-in-one personal computers, ultra-small form factor computers and servers are on the import restriction list. The system will also help to build a trusted supply chain for electronics amid rising cybersecurity concerns.

While introducing the system, the government also announced a review to assess its impact before deciding on its future. Since then, officials from the commerce department and the Ministry of Electronics and Information Technology (MeitY) have been engaged in discussions to evaluate its effectiveness and potential next steps, the report said.

“We have conducted several rounds of meetings with key industry representatives and individual companies over the past few weeks,” the report quoted a source as saying. “A final decision on the matter will be made soon.”

The Directorate General of Foreign Trade was in consultations with MeitY, said a spokesperson of the Commerce and Industry Ministry. “A decision will be made after assessing the objectives set out in implementing the import management system,” the spokesperson told the news source.  

Due to the lack of a strong domestic supply, the industry officials are in favour of extending the system. The extension will help in a structured transition and will also support the development of the manufacturing ecosystem in India, with hopes of increased participation from major players such as Dell and HP. These companies are expected to start their production from April 2025.

“The nudge has been beneficial, but continuing the current system is advisable to ensure a smooth transition and to support the IT hardware 2.0 scheme,” another source said.