Issues associated with Laptop Imports in India
First of all:
- With immediate effect, the central government issued an order in August requiring licences for the importation of laptops, tablets, and other gadgets.
- The action was purportedly justified on two grounds: first, to support homegrown industry; and second, to limit imports from China.
Fears related to the relocation:
- Fears were expressed that such a system would force India back decades to a period when many poor economic policy ideas can be traced, open the door for arbitrary action in other areas, and result in the implementation of import restrictions.
- As a result, the government postponed the date on which the licencing requirement would be implemented.
Renowned Licence Raj:
- Between 1947 and 1990, India had the Licence Raj, also known as Permit Raj, which was a system of rules and licences necessary for starting and operating a business, along with the associated red tape, delays, and corruption.
- This required obtaining a government licence in order to open for business.
Comments from around the globe:
- Critics of the divisive policy were coming from all directions. For example, nations including the US, China, South Korea, and Taiwan voiced reservations about this move at a recent conference of the World Trade Organisation. The government’s stance on the matter has since changed. Thank you for this.
A new system for managing imports:
- It unveiled an import management system for PCs and laptops, or IT hardware, on Thursday. Companies will only be required to register and disclose information about their imports and the country of origin under the new system.
- This paper reports on how the system will support import monitoring and guarantee that goods originate from reliable sources. Among other things, there are exclusions for hardware required for capital products and special economic zones.
- Importers will have an easy time using the faceless and contactless technology. Nevertheless, authorization for imports will not be granted to businesses on the “denied entity list.”
Way ahead:
- An incentive programme for IT gear based on production has already been established by the government. Furthermore, a number of businesses—including original equipment manufacturers and contract manufacturers—have reportedly applied for the programme.
- A more sensible course of action would be to improve the conditions that support the growth of a robust and dynamic industrial ecosystem. The goal of the policy framework should be to guarantee increased transparency and operational flexibility.
