Following an abrupt ban on inbound shipments without a license by the Indian government, multinational technology companies have decided to halt the import of laptops and tablets to India.
Regulators surprised major PC makers by making licenses mandatory for importing electronics, ranging from small tablets to all-in-one PCs. While laptop makers had anticipated some government measures to reduce import reliance and promote local production, the sudden imposition of licensing caught the industry off guard.
Tech firms are now in discussions with New Delhi on the most practical way to obtain licenses, especially with India’s Diwali shopping season and back-to-school period approaching. The duration it will take for technology companies to acquire licenses remains uncertain. Still, the trading halt is already causing disruptions in the multibillion-dollar market for foreign PCs at a critical time.
This requirement adds to the challenges faced by manufacturers dealing with excess inventory globally and has few triggers for sales growth. It could lead to delayed product launches or even shortages in a market heavily relying on overseas shipments.
This import restriction, exemplifying India’s unpredictable policy shifts, adds to existing measures to discourage importing foreign electronics. The country’s long-term ambition is to establish a world-class tech manufacturing industry.
