According to Information Technology Minister Ashwini Vaishnaw on Wednesday, over 32 foreign businesses have applied to India’s incentive program to manufacture laptops, tablets, and servers there in response to the restriction on laptop imports. This occurred soon after the government announced additional limitations on the importation of computers.

Recall that the HSN code 8741, which primarily applies to laptops, tablets, all-in-one PCs, and ultra-small computers, has import restrictions imposed by the Indian government. The Directorate General of Foreign Trade (DGFT) made the announcement and the Ministry of Commerce and Industry approved it earlier this week.

Popular laptop manufacturers including Dell, Lenovo, and others have applied to take part in India’s $2 billion incentive program, known as the production-linked incentive (PLI) program, according to a Reuters report. In May, this hardware-focused initiative for information technology was launched. The intention is to promote increased domestic manufacturing of these commodities.

India announced a new requirement for permits earlier this month for the importation of laptops, tablets, and personal computers.

This action was perceived as an effort to support the production of these goods locally. Several well-known firms, including Hewlett Packard Enterprise, Dell Technologies, Asus, Acer, and Lenovo, have expressed interest in producing laptops and other products in India.

The PLI program for IT hardware is expected to attract a sizable amount of investment (approximately Rs. 24.3 billion) and maybe generate 75,000 direct jobs, according to Information Technology Minister Ashwini Vaishnaw.

The administration has decided to provide a transition time of around three months in response to worries regarding the rapid adoption of the new license requirement for imports.

Importers are permitted to clear their goods during this time without a license. On the other hand, imports will now require a government permit as of November 1.

Presently, China is where the majority of laptops and personal computers sold in India are made or assembled.

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The government may be attempting to encourage a move of part of this manufacturing and assembly work to India with the implementation of this new legislation, just like it did with the production of smartphones. The Directorate General of Foreign Trade formally announced the restrictions on laptop imports on a Thursday morning.