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PC Import Curbs UPSC NOTE


  • On August 3, the government announced restrictions on the import of various IT hardware products.

  • These products include laptops, tablets, all-in-one personal computers, ultra-small form factor computers, and servers.

  • Initially, the restrictions were meant to be enforced immediately.

  • However, a revised order postponed the enforcement until November 1.

  • Import of items under Harmonised System of Nomenclature (HSN) 8471, which covers automated data processing machines and units, will be restricted from November 1.

  • A valid licence will be required for importing these products for sale.

Exemptions from licensing include:

  • Purchasing a single unit of mentioned products from e-commerce websites via post or courier.

  • Import of products for repair and return.

  • Importing up to 20 items in a consignment for research, development, testing, benchmarking, evaluation, repair, re-export, or product development.

  • Importing items that serve as essential parts of an entity's capital goods.


  • The primary objective is to reduce import dependence and enhance domestic manufacturing of IT hardware.

  • The government had introduced the production-linked incentive (PLI) Scheme 2.0 for IT hardware in May to promote domestic production.

Domestic Production and Imports:

  • Domestic electronic goods production grew to $87.1 billion in 2021-22 from $49 billion in 2016-17, with a 15% CAGR.

  • Imports related to the discussed products were around $10.1 billion in FY 2022-23, about 13% lower YoY.

Challenges and Impact:

  • IT hardware manufacturing capacity in India had declined over the years, leading to increased imports.

  • Companies like HP, Lenovo, Dell, Acer, and Asus dominated the domestic PC market.

  • Concerns arise regarding accessibility to stocks and potential price impacts.

  • Global companies request a 9-12 month deferment to increase domestic production and understand licensing.

Expected Developments:

  • Vendors are expected to stock inventory till October-end to avoid disruptions during festive sales.

  • Most major vendors have local assembly setups except Apple and Asus (potentially in the future).

  • Prices are not expected to increase for the next three months due to the festive season, but anticipation of future price hikes might drive early purchases.



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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: PC Import Curbs UPSC NOTE
PC Import Curbs UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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