Thursday, August 3rd 2023
India Imposes Import Restrictions on Prebuilt PCs
The Indian Government on Thursday announced restrictions on the import of pre-built laptop and desktop PCs, tablets, and convertibles. These restrictions take effect immediately. The decision is designed to get major PC manufacturers such as Dell, HP, Acer, Lenovo, and Apple, to manufacture their devices on Indian soil, or subject each individual PC model through a lengthy import licensing regime—essentially a penalty for not manufacturing locally. The new restrictions find several parallels to India's 2020 decision to restrict import of TVs, which caused major consumer electronics firms to rush to set up local assembly lines to keep up with the country's market demand.
The restrictions on the import of PCs is seen as complicating things for PC manufacturers, especially as the country heads into its biggest consumer cycle with Diwali (Q4-2023). India's current import restrictions on smartphones and TVs have caused most consumer electronics giants to set up assembly lines in India; however these lines barely contribute 20% of value-addition to the product (i.e. much of the product comes knocked down and is simply put together); however manufacturers are incentivized to localize more of their value-addition, through the country's performance-linked incentives (PLI) scheme. Certain whitebox ODMs have localized even PCB placement, and display panel manufacturing. India's ICT imports for the period of just Q2-2023 stood at $19.7 billion, the country clocks roughly $75-90 billion in ICT/PC sales per year.
Source:
Nikkei Asia
The restrictions on the import of PCs is seen as complicating things for PC manufacturers, especially as the country heads into its biggest consumer cycle with Diwali (Q4-2023). India's current import restrictions on smartphones and TVs have caused most consumer electronics giants to set up assembly lines in India; however these lines barely contribute 20% of value-addition to the product (i.e. much of the product comes knocked down and is simply put together); however manufacturers are incentivized to localize more of their value-addition, through the country's performance-linked incentives (PLI) scheme. Certain whitebox ODMs have localized even PCB placement, and display panel manufacturing. India's ICT imports for the period of just Q2-2023 stood at $19.7 billion, the country clocks roughly $75-90 billion in ICT/PC sales per year.
33 Comments on India Imposes Import Restrictions on Prebuilt PCs
junkstuff you'd get exactly that. Likewise pretty much anywhere in the world.Hopefully this is an isolated case then...
First revenue would drop off a cliff (India recently passed China as the most populous country). Then analysts would downgrade the companies and lower share price targets. Credit agencies would lower the companies' rating making it harder to borrow money.
Shareholders would eventually call for board of director changes and a large investor might try a board takeover.
The best and brightest employees would see the writing on the wall; they are always the first to leave because they have better opportunities elsewhere.
Yes, it most certainly would be a knock on those companies' asses. Hilarious.
Good call, sounds like a great plan.
:):p:D
and makes the capitalist industrialists more richer.
tell me who will benefit most from the new industries are going to be setup? i doubt they will be selling things at reasonable costs since its made in india. just like the made in india devices, it will still make the industrialists a good penny.
All countries do this to some extent to protect their own interests. These policies are very fluid and change over time. What is decreed for today may not be in effect five years from now.
For sure India is looking at China's growing tensions with the West as an opportunity to be a reasonable alternative (provided those countries agree to play by India's rules).
India is not rolling out the red carpet for people to march into India's living room and do whatever they please. Nor should they. Their primary responsibility is to look after the best interests of its citizens not the shareholders of foreign corporations like Apple, HP, Lenovo, Daimler Benz, Nestlé, etc.
Believe me the alternative - not having manufacturing - is much worst. You should not focus on the 10 rich people who will become richer. You should focus on the thousands who will get a good job.
India could walk back on this next week if they want. I predict that this is not India's last trade regulation that they will ever pass.
Lord knows legislators in the US have changed existing laws, sometimes for better (21st Amendment), sometimes for worse (19th Amendment).
Your thoughts? Any kind of thoughts?
Environmentally friendly production. There are dozens of movies with cases of local communities in USA getting poisoned from local factories without knowing it until people start getting cancer at alarming high numbers. I mean, in most countries environmental control is usually wishful thinking that ends up as money in the pockets of officials to make them look away.
oec.world/en/profile/country/ind/