### Summary
Global trade bodies, including Apple, Google, and Dell, are urging the US to persuade India to retract its IT import restrictions and hold a formal consultation with industry stakeholders.
### Facts
- 🌍 Major global IT and electronics companies are calling on the US to push India to reconsider its import restriction policy on IT hardware.
- 📜 Indian government placed laptops, tablets, and other electronics under the restricted category, requiring additional licenses for importation.
- 📝 US trade bodies have asked the US government to engage with India and ensure that its measures are consistent with international trade obligations.
- 🤝 The licensing measures imposed by India have raised concerns about the country's reliability as a trade and supply chain partner.
- 🛠️ IT hardware companies operating in India are seeking an extension of the deadline for licenses and clarity around the licensing process.
- 🌐 The trade bodies emphasize that the import restrictions could disrupt trade, harm businesses and consumers, and impose risks on data center investments.
- 🇺🇸 The United States should uphold World Trade Organization rules to discourage the expansion of such trade-restrictive measures in India and beyond.
(Source: The Economic Times)
India has become an attractive destination for global electronics manufacturers, with companies like Apple, Cisco, and Luxshare setting up manufacturing operations in the country to diversify from China and tap into India's large market, workforce, and vibrant presence of micro, small, and medium enterprises; however, there is a need for policy intervention to ensure growth extends beyond assembly units and focuses on creating an ecosystem for component manufacturing and value-addition to move up the value chain.
U.S. trade chief Katherine Tai has expressed concerns to India over its new licensing requirements for the import of laptops, tablets, and personal computers, citing potential adverse impact on U.S. exports and the need for stakeholder input.
At least 32 international electronics companies have applied to India's incentive program to manufacture laptops, tablets, and servers in the country as part of the government's push to boost domestic manufacturing capacity.
India's import restrictions on personal computers and laptops, aimed at boosting domestic manufacturing, have caught major suppliers off guard and may deter foreign investment.
With the right reforms, India has the potential to become the next engine of global growth, benefiting from major economic re-alignments caused by China's slowdown and the US diversifying its supply chains. Major corporations are already investing in India, recognizing its potential. However, India needs to overcome challenges such as high tariffs, infrastructure improvements, and regional cooperation to fully realize its manufacturing potential and attract foreign investment.
The Indian government is planning to rationalize tariffs on components used for making electronics goods to boost local production and increase competitiveness for exports.
India has decided to roll back its plan to impose restrictions on laptop imports after facing criticism from industry and Washington, instead opting to keep importers under close observation.
The US, China, South Korea, and Taiwan express concerns over India's import restrictions on computers and electronic products, stating that it could affect business relations and create trade barriers.
