On 1st August, Reliance Launched its affordable Laptop JIOBook, and on August 3, 2023, Indian Government Issued a Nationwide Laptop Import Ban also Ban on Personal Computers and Tablets.
The Directorate General Of Foreign Trade
Hsn Code is a classification system used to identify products for taxation purposes.
Data Processing machines are classified under HSN Code 8471. As Per the revised policy, restrictions on Personal Computer, Micro Computer, Large or Main Frame Computer, as well as other Automatic Free Data processing Machines, are restricted. However, these items could be imported after acquiring the required licence.
India’s Electronic Imports Between April And June 2023 was 20 billion dollars, a jump of 6.25% from 2022.
India’s 1.5% of total imports are electronic-based items.
Thanks to the PRODUCTION LINKED INCENTIVE SCHEME for Mobile Phones, the imports for mobile phones decreased 33 per cent YOY in the fiscal year 2022.
Apple also wanted to capitalise on India’s growth in Mobile Production Sector and manufacture the iPhones in India.
7% of All iPhones In the World Are Made In India.
India Now wants to boost the domestic production of laptops in India hence the Ban.
Reason For The Ban
The Main Reason Stated by the Government for issuing the laptop import ban is to boost the domestic growth of electronic Manufacturing In India And Push PM Modi’s Made In India Initiative.
Another Reason is to reduce dependency on foreign countries, mainly China.
Will This Laptop Import Ban Work?
In the past, India has Successfully Increased Domestic Manufacturing By Imposing High Tariffs on Mobile Goods, resulting In 38 Billion Dollar Production in 2022.
If it worked in the past, it could work with laptop import, too, now.
India has also Introduced the Production Link Incentive Scheme in 2020; the scheme incentivises companies to sell goods manufactured domestically.
Coincidence Or Stategy?
Ambani Launched JIOBook On August 1, and the Government Banned laptop Imports on August 3. This will eventually profit JIOBook as the Ban will kill all the overseas players.
For More News, Read Government Imposes 28% GST on Online Gaming In India and How Hero Motocorp’s Shares Plunge 3%