New Delhi: In a recent move, the Indian government has taken a significant step to curb the import of electronic devices, including phones, laptops, tablets, desktops, and servers. The Directorate General of Foreign Trade (DGFT) issued a notification on August 3, 2023, announcing an immediate ban on the import of such devices falling under category HSN 8741. This decision comes as a measure to reduce the influence of foreign companies on Indian citizens and to safeguard sensitive personal data.
Prior to this decision, the import of these devices was unrestricted, but the government has now imposed limits and requires valid licenses for any imports to be made. The move is aimed at promoting domestic manufacturing and reducing reliance on foreign suppliers, especially those from China and Taiwan.
A senior government official explained that the decision was taken to protect citizens fully, as some of the imported devices might have security flaws in their hardware, potentially leading to misuse of users’ sensitive personal data. This concern over data security was also the driving force behind the ban of hundreds of Chinese apps in India back in 2020.
To further boost local manufacturing, the Indian government announced Production Linked Incentive (PLI) schemes for 14 key sectors, allocating a substantial amount of Rs 1.97 lakh crore on August 2, just a day before the DGFT’s import restriction announcement. These incentives are intended to encourage companies to set up manufacturing units in India and facilitate exports from the country.
The decision has raised questions about the impact on consumers and companies. While it might result in increased prices of electronic devices due to limited imports, it could also pave the way for more job opportunities and economic growth in the manufacturing sector. As the government aims to “Make in India,” the focus is now on encouraging companies to produce electronic equipment within the country’s borders, a move that could potentially benefit both the industry and consumers in the long run.
In conclusion, the Indian government’s recent decision to impose import restrictions on electronic devices and promote domestic manufacturing is a significant step towards self-reliance and data security. It remains to be seen how this move will shape the future of the electronic industry in India and its impact on consumers.
