IT Industry Responds to The Government's Decision To Ban Laptop Imports

IT Industry Responds to The Government's Decision To Ban Laptop Imports

In an unexpected turn of events, the government has unveiled its decision to place limitations on the import of laptops, computers, and tablets. This move is being discussed across the technological landscape and consumer sectors, eliciting apprehensions about its potential ramifications on the industry. The imposition of these restrictions is a strategic step to stimulate domestic manufacturing and production of these gadgets, with the key goals of employment generation, bolstering local industries, and diminishing dependence on overseas imports. This significant announcement has triggered a spectrum of responses within the industry. Prominent figures and a handful of leading brands have shared their insights and opinions with DT. Read on for excerpts from these conversations.

“We understand that the notice to restrict imports of laptops, tablets and other related products is a start of the process to accelerate Make In India. Acer as one of the leading computer and tablet brands in the country has been manufacturing laptops, all-in-ones and tablets in India over the past few years while desktops have been manufactured in India for over 20 years at our factory in Pondicherry,” - Acer

“We are aware of the new regulations. Dell has been manufacturing in India for 15 years and we continue to work with the Indian Government on our plan,” – Dell

“It is good decision but taken on hurry without any notice which is not correct. The distribution will be impacted for at least 3 months because of that. But we have only one month Inventory to fulfil the current requirement,” - DP Sinha, MD, Graphline Computers Pvt. Ltd.

“I feel this action is already delayed. It will help Indian hardware ecosystem to grow multifold and also the consumption of products to increase. This will also enable employment, technical engineering and GDP growth,” - Anuj Modi, CEO, Modi Infosol

“I remember that day 1992 to 1995, 96 would be the time when we used to assemble computers, companies like Microtek, Vintron, Altos used to make parts like motherboard, SMPS, cabinet, UPS in India and computers made from them used to last for years. Then suddenly the government of that time imposed excise duty on computer parts and computer assembling on all Indian manufacturers and increased the excise and sales tax a lot and at the same time opened imports from China and reduced customs very much so that it could be made in India. All the parts became very expensive and despite being very cheap and very light in quality, the parts imported from China started selling more and Indian companies were closed or they stopped making computer parts,” stated Rajiv Khanna, Media Advisor, Punjab Association of Computer Traders (PACT).

Rajiv further added, “And today's government is now doing exactly the opposite and this will benefit the country a lot, the country will develop, employment will increase and the quality of the products will also improve. Modi government had asked all companies to make in India products, GEM in govt department was supplying only make in India products, but these companies were producing only as much as was needed by the government. I believe in the coming time, demand will increase during student and festivals and due to stop of import, HP, Dell, Lenovo, Asus, Acer all will have to do 100% production in India to meet their demand. This will complete make in India mission of our country and export will also start.”

Mr. Vijay Goel, Vice President, Trade Association of Information & Technology (TAIT) added, “This move is intended to promote the growth of Make in India products. Nonetheless, the current manufacturing capacity in India is not yet sufficient to meet the entire domestic demand for these items. As a result, the government will need to provide a considerable amount of time for the Make in India initiative to reach a point where it can adequately fulfill the nation's consumption needs.”

Alok Gupta, PCAIT President said, “The government's decision to restrict the import of laptops, computers, and tablets is undoubtedly a significant boost to the Make in India initiative. The Make in India campaign was launched with the objective of transforming India into a global manufacturing hub and promoting indigenous manufacturing across various sectors, including electronics.”

“While complete clarity on the notification is still awaited, assumptions are being made about what will happen next. Post Covid, channels had seen a situation of supply surpassing the demand. With reports of 30% YoY decline in the PC market, challenges seemed to increase in PC business. Channel profitability took a hit as well owing to inventory carrying costs & increased competition, coupled with low demand. This notification is expected to temporarily create a situation of positivity in channels & the supply demand gap is expected to be bridged, even though temporarily. We may not see a COVID times like situation, but definitely an improved business is expected. Above is based assumption that supply chain of imported PCs of all brands will get impacted based this action from the Government,” - Vishal Sopory, Founder, Transtek Infoways Pvt Ltd.

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