India imposes new rules limiting computer imports; fate of major firms unknown.

India has implemented new licensing requirements,Retail forex dealer mandating companies importing laptops, tablets, and personal computers to obtain a special license. This move may affect tech companies like Apple, Dell, and Samsung.

Previously, importing computers was duty-free, but the new regulations require obtaining government special permission, which will increase the waiting time for launching each new model, potentially restricting some companies' import businesses. India imposed similar restrictions on televisions in 2020.

The Indian laptop market is growing steadily. Last year, the market size was $5.5 billion, with a compound annual growth rate (CAGR) of 6.7% projected from 2023 to 2028, expected to reach $8.1 billion by 2028.

The new regulations aim to promote the development of locally manufactured products and limit other imports. The Indian government has been pushing for local manufacturing to fulfill Prime Minister Narendra Modi's "Make in India" campaign. The government also offered a $2.1 billion financial incentive to attract hardware manufacturers to establish production bases in India.

Apple manufactures about 7% of its global iPhone output in India but does not produce other products like iPads or MacBooks there. According to last year's data, the tech giant exported more than $2.5 billion worth of iPhones from India, indicating Apple's accelerated trend of shifting some of its manufacturing from China to India, possibly related to escalating geopolitical tensions.

Market leaders in India, Dell and HP, both have manufacturing operations for commercial computers. In the personal computer market, according to data, HP is the clear leader with a 30% market share in 2022, followed by Dell with 19%. However, their computer and laptop production in India is limited due to dependence on imported components.

An informed source disclosed that aside from promoting local manufacturing, the Indian government's implementation of new licensing requirements is also driven by caution over security, aiming to limit imports from China. About half of the restricted items come from China. Given the border conflicts and geopolitical tensions between India and China, the Indian government decided to limit Chinese imports and control these imports through new licensing requirements, allowing only imports from trusted partners. While Chinese companies are affected, India's domestic computer and related industries are also involved.

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