Days after the Directorate General of Foreign Trade (DGFT) deferred the implementation of import curbs on laptops, personal computers (PCs), and related items to November 1, the companies that import such products have been told to expedite their plans to manufacture in India, according to people aware of the matter.
On Tuesday, major electronic firms like Dell, HP, Samsung and Apple, among others, met the minister of state for electronics and IT Rajeev Chandrasekhar, and officials from the IT ministry.
Some companies sought an extension beyond three months to complete licensing requirements and set up manufacturing bases in India. Some also urged the government not to impose any quota on imports after the companies obtain the licences. They also sought clarity on the validity of the licences and whether the same could be applied by different subsidiaries.
“The government admitted that the notification should not have been brought in with immediate effect. We urged the government to extend the deadline further so that we can fulfil demand through imports till the time we identify supply chain partners and start manufacturing in India,” a representative of one of the laptop companies said.
The companies do not want any obstacles during the festive season, the representative added.
Sources in the know said the government assured the industry that India has a stable policy regime and the intent of the latest decision was only to increase manufacturing in the country.
“We have addressed all the concerns of the companies and asked them to apply under the revised IT hardware scheme and start their manufacturing in India as soon as possible,” a government official said.
Such regulations will also give the government information about the kind of imports being done and the geographies from where they are being done, which is critical from the security point of view, the official said.
“We have also sought alternatives from the industry to increase domestic manufacturing without banning imports,” the official said.
The government last week announced immediate restrictions on the imports of laptops, tablets, and PCs and notified that companies will be able to import such products only after a valid licence.
While it was seen as a move to expedite local manufacturing of such products and prompt companies to apply under the IT Hardware PLI 2.0, companies, including Dell, HP, and Apple, were unhappy as they are yet to strengthen their manufacturing base in India.
Following industry recommendations, the government allowed imports without restrictions till October 31, after which they will require a valid licence.
On the industry’s request to extend the deadline of the notification, the government official said there is no such plan at present and it will be looked at closer to the November 1 deadline. Further, the licences issued to these companies will be valid for one year, after which they will have to reapply. A single business enterprise can get multiple licences through subsidiaries, the official said, adding that the licences will be approved in 5-10 minutes upon getting the applications.
Of the 44 electronic companies that have registered on the online portal for the Rs 17,000-crore IT Hardware PLI, only two, including HP, have applied for incentives under the scheme so far, according to government sources.