The Indian government is gearing up to reduce import limits on laptops, tablets, and PCs by 5% annually starting in 2025. This phased reduction encourages domestic manufacturing under the Production-Linked Incentive (PLI) scheme, promoting self-reliance and reducing dependence on imports, particularly from China and Hong Kong, which supply nearly 70% of these items.

Extension for Free Imports until December 2024

Initially, import restrictions on IT hardware were planned for September 2024, but the deadline was extended until December 31, 2024. The new system mandates that import limits will use 2024–25 data as the base, with a 5% decrease each subsequent year to support a smoother transition to local production.

Industry Concerns and Upcoming Guidelines

The IT sector, valued at approximately $10 billion, has expressed concerns over possible supply disruptions. Tech giants like IBM, Dell, and Lenovo participated in consultations with government officials, seeking clarity on the new rules. An online import management system is expected to streamline the import process, reducing reliance on manual customs procedures.

Security and Self-Reliance Goals

The policy shift also aligns with national security interests by lowering dependence on specific geographies, particularly China. The government views this as a pivotal move to increase domestic production, reduce security risks, and establish India as a major player in the global IT hardware sector.

The Directorate General of Foreign Trade (DGFT) will soon release further guidelines for the new import authorisation process, expected to impact India’s IT import landscape starting January 1, 2025.