A top government official has disclosed that forty-four companies, including prominent brands, have submitted applications for incentives under the production-linked incentive (PLI) program for IT hardware manufacturing.
The recently introduced import restrictions on items like laptops and tablets, although implemented from a security standpoint, are expected to drive local production and not disrupt supply chains, according to the official. The official mentioned that IT hardware companies have been informed about the licensing portal, where acquiring approval for an import license takes only five to ten minutes.
All About the IT Hardware Companies Enrollment
The official emphasized that the security-oriented regulations would not lead to disruptions. The import limitations, applicable to laptops, tablets, servers, all-in-one personal computers, and ultra-small form factor computers, were deferred to November 1 by a subsequent notification issued late on Friday, with import consignments not needing a license until October 31. The move aims to safeguard against potential security vulnerabilities that could compromise sensitive data.
The official noted that this step could transform India into an export hub for laptops and servers. He highlighted that a well-established ecosystem already exists for laptop and server manufacturing. As evidence, 44 companies have enrolled in the IT hardware PLI program, many of which are well-positioned to commence production immediately. Major laptop manufacturers have shown interest in the revised PLI scheme. Additionally, leading server manufacturers intend to make India a significant export center, aligning with the country’s thriving mobile phone manufacturing scene.
The official mentioned that the industry’s reaction was anticipated, especially its impact on the trading community. He emphasized the convenience of online registration and licensing. Minister of State for IT and Electronics, Rajeev Chandrasekhar, shared that the government’s aims include ensuring reliable hardware and systems, decreasing import dependence, and boosting domestic manufacturing for this product category.
Despite these intentions, industry experts have raised concerns about the timing of the announcement, coming just before the festive season when sales typically surge. The notification does feature exemptions, such as allowing the import of specific devices as personal baggage and permitting the import of IT devices for research, testing, and evaluation purposes, among others.
