Apple Inc., Samsung Electronics Co., and HP Inc. are among the major companies that have suspended new laptop and tablet imports to India following an unexpected ban on unlicensed shipments.
Regulators stunned the world’s largest PC producers on Thursday by making permits required for the import of gadgets ranging from small tablets to all-in-one PCs. Laptop manufacturers had been prepared for some government steps aimed at reducing reliance on imports and increasing domestic manufacturing, but the abrupt license imposition took the industry off guard, according to people familiar with the topic, who declined to be identified owing to the sensitivity of the issue.
According to the persons, IT corporations are currently negotiating with the central government on how to secure licenses as swiftly as possible, as India’s Diwali shopping season and back-to-school time approach. It’s unknown how long it will take Apple and others to obtain permits, but the stop is already affecting a multibillion-dollar trade in foreign PCs at a critical juncture.
The need adds to the woes of manufacturers who are already dealing with global excess of inventory and few triggers to reignite sales growth. It might lead to delayed India launches or possibly product shortages in a market that is still heavily reliant on outside supply.
The import ban, another example of India’s abrupt policy adjustments, adds to long-standing barriers aimed to discourage the entry of foreign electronics. It is meant to help accomplish long-term goals of creating a world-class tech manufacturing industry.
The administration of Prime Minister Narendra Modi is presently accepting applications for a 170 billion-rupee financial incentive scheme to entice manufacturers of laptops, tablets, and other hardware to the world’s most populous country, as companies want to diversify supply chains outside China.
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