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India's Laptop Imports From China Shot Up After Licence Plan Was Revoked

author The Wire Staff
Apr 08, 2024
China exported 64.93 lakh units to India in FY24 compared to 61.24 lakh units in FY23.

New Delhi: Despite the Union government efforts to discourage laptop and PC imports from China, there was a 6% rise in these imports in FY2024 (till January). Overall, India’s imports of these goods went up 5% year-on-year in this period.

According to The Indian Express, China exported 64.93 lakh units to India in FY24 compared to 61.24 lakh units in FY23.

In August 2023, the Union government had imposed import curbs on laptops, tablets, and certain types of computers, citing “security reasons” and the need to promote domestic manufacturing. However, few weeks later, it rolled back the decision.

According to The Indian Express, “The data shows that the immediate reaction by companies to the DGFT [Directorate General of Foreign Trade] licence restriction, and the almost immediate postponement of the plan till October 31, was to quickly stock up on inventory. And after October, when the government revoked the import licence plan, total imports fell amid high stocks — but China’s share in the overall pie grew considerably.”

Before this controversial and quickly revoked notification, between April and July 2023, about 76% of India’s laptop imports came from China. During the time the notification was introduced and there was confusion around its revocation, between August and October 2023, China’s share came down to about 70%. However, in the time right after that – between November 2023 and January 2024 – China’s share in India’s laptop imports went up to 87.5%.

It has been reported that India rolled back its licensing plan after pushback from the World Trade Organisation and the US.

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