After laptops, cameras and printers could also face import curbs

New Delhi: After making a licence mandatory for imports of personal computers and laptops, the government is looking at other products on which such curbs could be imposed such as cameras, printers, hard disks, parts of telephonic and telegraphic devices, said people aware of the matter.

The local demand for these products is substantial and their heavy imports need immediate intervention to push domestic production opportunities, they said.

The imports of these goods crossed $10.08 billion in FY23.

Separately, the government is also said to be reviewing other high-import products such as urea, antibiotics, turbo-jets, lithium-ion accumulators, refined copper, machines and mechanical appliances, solar and photovoltaic cells, aluminium scrap, sunflower seed oil, and cashew nuts.
India’s total merchandise imports rose 16.5% in FY23 to $714 billion, swelling the country’s current account deficit to 2% of GDP in FY23 from 1.2% of GDP in the preceding fiscal year. The government is also keeping a watch on shipments of the 250 products covered by the Information Technology Agreement-1 or ITA-1 on which India can’t levy import duties.”The focus is on those end products in the ITA-1 whose bulk imports are a cause of concern,” said an official.The ITA-1 products cover many high-technology goods including integrated circuits, computers, telecom equipment, semiconductors, semiconductor manufacturing, amplifiers and testing equipment, software, and scientific instruments.

“Chips and displays are the most costly products and there is a need to encourage their manufacturing. Medical devices is another sector,” said an official.

Imports of printers, keyboards, hard discs, and scanners are also being studied to see if there is a local manufacturing possibility.

“It seems the government wants to regulate the import of goods that come duty-free under the ITA-1. They are making a ground for any potential disputes at the World Trade Organization (WTO) in the future,” said an industry representative.

Last week, India said import licences will be needed for shipping in laptops, tablets, all-in-one-personal computers, ultra-small factor computers, and servers beginning November 1. PC, laptop and tablet imports added up to $5.3 billion in the last fiscal while Wi-Fi dongles, smart card readers, and Android TV box shipments totalled $2.6 billion.

A 2020 study by the Indian Institute of Foreign Trade (IIFT) found that out of 126 member countries that are signatories to the ITA-1 agreement, 114 are net importers of the products covered, with China, Hong Kong, South Korea, Singapore, Germany, Japan and the US being the top seven exporters in the world with a share of more than 80% of total exports.