India is planning a controversial measure that would limit the import of personal computers, including laptops and tablets, in an effort to boost domestic manufacturing.
India is one of the world’s largest markets, making it a critical factor for the world’s top electronics makers. Unfortunately, that may be about to change, with the country planning to limit the very exports many countries are relying on to spur future growth.
According to Reuters, New Delhi wants to use import controls as a way to force companies to rely more heavily on India’s manufacturing. India has been working to challenge China as the go-to country for electronics manufacturing, and import limits could be a deciding factor in companies choosing to set up operations in the country.
There’s no set date for any such provisions to go into effect, with the government set to begin consulting with various parties next week. Any resulting rules could still be months away.
Another challenge is the limits global treaties place on electronics tariffs, meaning New Delhi will have to get creative in order to impose import restrictions without violating those treaties. One possible option is to set minimum quality standards that manufactures must meet in order to import their products.
“We are working on such restrictions as global treaties stop us from any tariff action on laptops and tablets. It leaves us with few policy options to limit imports,” an official said.
If India does pass import controls, it could cause significant disruption—both to companies and India’s IT industry.