India Ban Laptop Import: laptop prices will increase? Is that the right time to purchase a new laptop?

On August 3, 2023, the big news came up from the Indian government that the government is going to ban laptop imports in India, the importer needs to obtain a license before importing laptops, tablets, PCs, servers, and other similar electronic items. This decision led to a huge impact on the tech industries.

According to the data, this ban will be effective from 1st November 2023, before that any company can import laptops, tablets, etc from other countries, 

The license will be required to import those items which fall under HSN 8741 Categories which include Laptops, Tablets, All-in-one Personal Computers, Ultra small form factor computers, and servers.  

Now the real question arises is there really a ban on importing laptops, tablets, PCs and other similar electronic items?

The answer is NO,

Any company can still import Laptops, PCs from other countries, but they need to take extra permission or a license from the government of India to Import. 

Two companies have already applied for the license, there is no disclosure about the cost of the license, or are there any other extra custom duties or taxes that may be applicable for the license?  but it is obvious there must be some extra cost that companies need to pay to the government to import these items into India,

The secretary to the Ministry of Electronics & information technology further said that the license needed for such imports will be given within 5 mins since the license portal by DGFT is already online and will be valid for one year.

But this is not the first time that the Indian government has taken such a decision, earlier in 2020 India restricted imports of TV. After that, the majority of the company set up their manufacturing unit in India so that imports reduce by 90% in just two years, and now 99% of TVs are made in India.

Similarly, when the Indian government started charging taxes on smartphone import, the majority of smartphones start assembled in India, only semiconductors are imported from other countries, but motherboards are manufactured and assembled in India, 

And the government also wants to implement the same on Laptops, tablets, and PCs also,

So there is a clear indication that

• The ban could force the manufacturers to set up manufacturing Hubs in India, That is what the government wants. 
• Which could lead to more job opportunities, and lead to economic growth.
• Reduce reliance on foreign goods.
• Reduce fears of data piracy and other security risk associated with imported electronics
• Boosting MAKE IN INDIA
• This ban could result in more diversified technological innovation.

Will the price of these goods – laptops, tablets, personal computers – rise?

No. 

According to the officials, the price of those goods won’t rise and there will be no disruption to goods in transit. And this restriction has no relation with the alleged low uptake of PLI 2.0. 44 companies, including HP, have already registered under PLI 2.0 schemes, he added.

So there is no need to hurry to purchase computers, laptops, or tablets because these products might no longer have the same prices after some days as now,  Don,t worry you can purchase them later. Even if you wait a couple of years the price might drop because these products might start to be manufactured in India.

Aser is the only company with an assembling unit. In India, they assemble laptops and sell them in India. But the other well-known companies import their laptops, PCs and Tablets from China, Korea, Vietnam, and other countries. After this ban, we might observe that PC and Laptop manufacturers start building their own manufacturing units in India, because of huge demand in the Indian market. 

But this is not going to happen overnight. It might take some years and I think to continue the supply chain balance the government will not charge importers more immediately.

Note. This law is applicable only to those who want to import goods from other countries and sell in India, but if you want to import a laptop or tablet from other countries for personal use you don’t need any license, the same customs are applicable at the time of importing.