In a major move aimed at boosting local manufacturing, India on Thursday (August 3) imposed with immediate effect curbs on importing laptops, tablets and personal computers.

“Import of laptops, tablets, all-in-one personal computers, and ultra small form factor computers and servers falling under HSN 8741 shall be ‘restricted’ and their import would be allowed against a valid licence for restricted imports,” a notification released by the ministry of commerce read.

However, imports under baggage rules are still allowed. It means that one laptop, tablet, all-in-one personal computer, or ultra-small form factor computer, including those bought from online portals through post or courier, will not fall under the purview of the Import Licensing Rules.

However, the duty on such items will have to be paid. The import was free under the previous regime.

<h2>More details about the new import regime</h2>

The notification also mentions that 20 such items (laptops, tablets and PCs) per consignment to focus on research and development, testing, benchmarking, evaluation, repair and re-export, and product development purposes will be exempted from import licence.

Make no mistake, these exemptions only apply to those items not meant to be sold. The items must be destroyed or re-exported once the intended purpose of the import is fulfilled.

It also added that the license for restricted imports was not required for re-importing goods sent abroad for repair.

<h2>Move aimed at boosting local manufacturing</h2>

Experts believe the move will boost the government’s ‘Make in India’ programme, as the country seeks to capitalise upon its vast consumer market to force manufacturers to start production in India.

"The move's spirit is to push manufacturing to India. It's not a nudge, it's a push," Ali Akhtar Jafri, former director general at electronics industry body MAIT, was quoted as saying by Reuters.

Also read<a href="https://www.wionews.com/business-economy/morgan-stanley-upgrades-indias-rating-to-overweight-downgrades-china-621878">:&nbsp;Morgan Stanley upgrades India’s rating to ‘overweight’, downgrades China</a>

The intent seems to be "import substitution of certain goods that are imported heavily," said Madhavi Arora, an economist at Emkay Global.

Previously, India relied on excessive import duties to discourage imports and encourage local manufacturing.

In 2022, India produced mobile phones worth a whopping $38 billion, while the production of laptops and blankets was a mere $4 billion.&nbsp;

<h2>Production-linked incentives&nbsp;</h2>

India is actively promoting domestic production by offering production-linked incentives across various sectors, including electronics.

The application deadline for India's $2 billion manufacturing incentive programme has been also extended, to attract significant investments in IT hardware manufacturing. This programme encompasses items such as laptops, tablets, personal computers, and servers.

Watch:&nbsp;India: A truly 'bright spot' in world economy

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This incentive initiative plays a pivotal role in India's aspiration to establish itself as a dominant player in the worldwide electronics supply network, aiming to achieve a yearly production value of $300 billion by 2026.

(With inputs from agencies)

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In a major move aimed at boosting local manufacturing, India on Thursday (August 3) imposed with immediate effect curbs on importing laptops, tablets and personal computers.

In a major move aimed at boosting local manufacturing, India on Thursday (August 3) imposed with immediate effect curbs on importing laptops, tablets and personal computers. “Import of laptops, tablets, all-in-one personal computers, and ultra small form factor computers and servers falling under HSN 8741 shall be ‘restricted’ and their import would be allowed against a valid licence for restricted imports,” a notification released by the ministry of commerce read. However, imports under baggage rules are still allowed. It means that one laptop, tablet, all-in-one personal computer, or ultra-small form factor computer, including those bought from online portals through post or courier, will not fall under the purview of the Import Licensing Rules. However, the duty on such items will have to be paid. The import was free under the previous regime. More details about the new import regime The notification also mentions that 20 such items (laptops, tablets and PCs) per consignment to focus on research and development, testing, benchmarking, evaluation, repair and re-export, and product development purposes will be exempted from import licence. Make no mistake, these exemptions only apply to those items not meant to be sold. The items must be destroyed or re-exported once the intended purpose of the import is fulfilled. It also added that the license for restricted imports was not required for re-importing goods sent abroad for repair. Move aimed at boosting local manufacturing Experts believe the move will boost the government’s ‘Make in India’ programme, as the country seeks to capitalise upon its vast consumer market to force manufacturers to start production in India. "The move's spirit is to push manufacturing to India. It's not a nudge, it's a push," Ali Akhtar Jafri, former director general at electronics industry body MAIT, was quoted as saying by Reuters. Also read: Morgan Stanley upgrades India’s rating to ‘overweight’, downgrades China The intent seems to be "import substitution of certain goods that are imported heavily," said Madhavi Arora, an economist at Emkay Global. Previously, India relied on excessive import duties to discourage imports and encourage local manufacturing. In 2022, India produced mobile phones worth a whopping $38 billion, while the production of laptops and blankets was a mere $4 billion. Production-linked incentives India is actively promoting domestic production by offering production-linked incentives across various sectors, including electronics. The application deadline for India's $2 billion manufacturing incentive programme has been also extended, to attract significant investments in IT hardware manufacturing. This programme encompasses items such as laptops, tablets, personal computers, and servers. Watch: India: A truly 'bright spot' in world economy × This incentive initiative plays a pivotal role in India's aspiration to establish itself as a dominant player in the worldwide electronics supply network, aiming to achieve a yearly production value of $300 billion by 2026. (With inputs from agencies) WATCH WION LIVE HERE ×

India restricts imports of laptops, tablets and PCs to boost local manufacturing

Consumer durables and home appliances makers like Godrej Appliances, Panasonic, Philips Lighting and Intex want the government to lower taxes, give incentives to local manufacturing and increase customs duty on imports.

Besides, the ACE (Appliances &amp; Consumer Electronics) industry also wants the government to encourage manufacturing of energy-efficient products.

&quot;Consumer appliances as refrigerators, washing machines and ACs are no longer considered luxury items. Such consumer appliances need to be made more affordable to the consumers and be put in a lower tax bracket from 28 per cent to 18 per cent,&quot; said Godrej Appliances Business Head &amp; EVP Kamal Nandi.

The makers are also expecting tax reduction on the energy efficient 5-star and 4-star products to increase adoption by the consumers.

&quot;There should also be incentives for manufacturers to produce energy-efficient products which will be in line with the government&#39;s focus on sustainability as well as its Makein India initiative,&quot; Nandi added.

While Panasonic is looking for a hike in the customs duty for ACE products category such as washing machines and refrigerators to encourage local manufacturing.

&quot;With the BCD hiked on items such as smartphones, TV&#39;s microwaves and LED lamps, we expect the union government to take similar steps on other durable items as washing machines, and refrigerators to further encourage localised indigenous manufacturing,&quot; said Panasonic India and South Asia President and CEO Manish Sharma.

Expressing similar views, Philips Lighting India said customs duty on all finished lighting products and luminaries should be raised as the government had done on import of LED bulbs.&nbsp;

&quot;We also welcome the recent increase in customs duty for finished LED bulbs from 10 to 20 per cent and hope that the government will extend it to all finished lighting products and Luminaires,&quot; said Philips Lighting India Vice Chairman and Managing Director Sumit Joshi.

While, Intex has asked for the reduction of GST rates on parts and subparts as battery, shield used in the manufacturing of mobile phones to 12 per cent from the present 28 per cent.

&quot;All parts and subparts which are used in the manufacturing of mobile phones should be taxed at 12 per cent as similar to GST rates of mobile phone as higher GST rates increase the cost of mobile phones hampering the manufacturing of phones in India,&quot; said Intex CFO Rajeev Jain.&nbsp;

He further said that the GST rates for power banks, television tuner cards and webcams should also be reduced to 18 per cent.

The makers are also expecting tax reduction on the energy efficient 5 star and 4 star products to increase adoption by the consumers

Consumer durables and home appliances makers like Godrej Appliances, Panasonic, Philips Lighting and Intex want the government to lower taxes, give incentives to local manufacturing and increase customs duty on imports. Besides, the ACE (Appliances & Consumer Electronics) industry also wants the government to encourage manufacturing of energy-efficient products. "Consumer appliances as refrigerators, washing machines and ACs are no longer considered luxury items. Such consumer appliances need to be made more affordable to the consumers and be put in a lower tax bracket from 28 per cent to 18 per cent," said Godrej Appliances Business Head & EVP Kamal Nandi. The makers are also expecting tax reduction on the energy efficient 5-star and 4-star products to increase adoption by the consumers. "There should also be incentives for manufacturers to produce energy-efficient products which will be in line with the government's focus on sustainability as well as its Makein India initiative," Nandi added. While Panasonic is looking for a hike in the customs duty for ACE products category such as washing machines and refrigerators to encourage local manufacturing. "With the BCD hiked on items such as smartphones, TV's microwaves and LED lamps, we expect the union government to take similar steps on other durable items as washing machines, and refrigerators to further encourage localised indigenous manufacturing," said Panasonic India and South Asia President and CEO Manish Sharma. Expressing similar views, Philips Lighting India said customs duty on all finished lighting products and luminaries should be raised as the government had done on import of LED bulbs. "We also welcome the recent increase in customs duty for finished LED bulbs from 10 to 20 per cent and hope that the government will extend it to all finished lighting products and Luminaires," said Philips Lighting India Vice Chairman and Managing Director Sumit Joshi. While, Intex has asked for the reduction of GST rates on parts and subparts as battery, shield used in the manufacturing of mobile phones to 12 per cent from the present 28 per cent. "All parts and subparts which are used in the manufacturing of mobile phones should be taxed at 12 per cent as similar to GST rates of mobile phone as higher GST rates increase the cost of mobile phones hampering the manufacturing of phones in India," said Intex CFO Rajeev Jain. He further said that the GST rates for power banks, television tuner cards and webcams should also be reduced to 18 per cent.

Budget 2018: Home appliance makers seek tax incentives for local manufacturing

India has offered to allow Apple&nbsp;to import mobile handset components intended for use in local manufacturing tax free, a top government official said on Tuesday.

The tax concessions will be subject to the condition of increasing local value addition over a period of time.

Apple wants to expand its contract manufacturer&nbsp;facility in the Indian tech hub of Bengaluru, Ravi Shankar Prasad, the union minister for Electronics and IT, said on Tuesday, as the iPhone maker seeks a larger share in one of the world&#39;s biggest smartphone markets.

Apple last week started making iPhone SE at its Taiwanese contract manufacturer Wistron&#39;s plant in Bengaluru.

The company, which sold over 50 million iPhones in the March quarter, down 1 per cent year-on-year, is looking for new markets as its sales in China have weakened.

Among a set of tax concessions, Apple had initially sought a 15-years tax holiday for all components that it would import for setting up a manufacturing facility in India.

A panel of ministries rejected that demand and has offered a phased programme to increase the share of local production in the manufacturing, Aruna Sundararajan, Secretary at the Ministry of Electronics and IT said.

&quot;We have offered them tax exemptions on those components which could not be manufactured in India,&quot; Sundararajan told Reuters, adding that local manufacturing component would have to be increased gradually.

Apple has agreed to increase local share in production over a period of time, but there was a difference between the plans of the two sides, she said.

Apple was not immediately available for comment.

India wants Apple to raise value addition share in phases of 3,5,7 and 10 years as local capacity builds up, part of Prime Minister Narendra Modi&#39;s plans to boost manufacturing.

Industry estimates the phased manufacturing programme could increase local value addition in mobile phones manufacturing to 40-50 per cent in the next three years.

Earlier, Ravi Shankar Prasad said government officials were in touch with Apple and other mobile phone manufacturers about expanding facilities and setting up new plants.

&quot;It will be a little early to say that India and Apple have agreed on the common ground,&quot; said the official, adding India was ready to work out a roadmap to encourage manufacturing.

Industry estimates total value of mobile phones produced in India touched Rs 900 billion&nbsp;($13.9&nbsp;billion) compared with Rs 540 billion&nbsp;in the previous year.

&quot;We are waiting for Apple to come back,&quot; said Sundararajan.

(Reuters)

Apple can now import mobile handset components tax free for local manufacturing

India has offered to allow Apple to import mobile handset components intended for use in local manufacturing tax free, a top government official said on Tuesday. The tax concessions will be subject to the condition of increasing local value addition over a period of time. Apple wants to expand its contract manufacturer facility in the Indian tech hub of Bengaluru, Ravi Shankar Prasad, the union minister for Electronics and IT, said on Tuesday, as the iPhone maker seeks a larger share in one of the world's biggest smartphone markets. Apple last week started making iPhone SE at its Taiwanese contract manufacturer Wistron's plant in Bengaluru. The company, which sold over 50 million iPhones in the March quarter, down 1 per cent year-on-year, is looking for new markets as its sales in China have weakened. Among a set of tax concessions, Apple had initially sought a 15-years tax holiday for all components that it would import for setting up a manufacturing facility in India. A panel of ministries rejected that demand and has offered a phased programme to increase the share of local production in the manufacturing, Aruna Sundararajan, Secretary at the Ministry of Electronics and IT said. "We have offered them tax exemptions on those components which could not be manufactured in India," Sundararajan told Reuters, adding that local manufacturing component would have to be increased gradually. Apple has agreed to increase local share in production over a period of time, but there was a difference between the plans of the two sides, she said. Apple was not immediately available for comment. India wants Apple to raise value addition share in phases of 3,5,7 and 10 years as local capacity builds up, part of Prime Minister Narendra Modi's plans to boost manufacturing. Industry estimates the phased manufacturing programme could increase local value addition in mobile phones manufacturing to 40-50 per cent in the next three years. Earlier, Ravi Shankar Prasad said government officials were in touch with Apple and other mobile phone manufacturers about expanding facilities and setting up new plants. "It will be a little early to say that India and Apple have agreed on the common ground," said the official, adding India was ready to work out a roadmap to encourage manufacturing. Industry estimates total value of mobile phones produced in India touched Rs 900 billion ($13.9 billion) compared with Rs 540 billion in the previous year. "We are waiting for Apple to come back," said Sundararajan. (Reuters)

India offers tax concessions to Apple to expand production

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