India forces licensing requirements for imported computers and tablets

India has implemented a new regulation that requires licensing for the importation of laptops, tablets and personal computers. This action has the potential to significantly impact major companies such as Apple, Dell, and Samsung, compelling them to enhance their local manufacturing efforts.

Current regulations in India allow companies to import laptops freely, but the new rule mandates a special licence for these products similar to restrictions India imposed in 2020 for inbound TV shipments. Industry executives said a licensing regime would mean prolonged wait times for each new model they launch and would come just ahead of a festive season in India when sales typically surge.

The government in its notification gave no reason for the move, but has been promoting local manufacturing and discouraging imports. India's electronics imports, which include laptops, tablets and personal computers, stood at $19.7 billion in the April to June period, up 6.25% year-on-year.

Research firm Counterpoint estimates India's laptop and personal computer market to be worth $8 billion annually, with two-thirds of those imported.

Apple, Dell, and Samsung did not immediately respond to Reuters' requests for comment. They, along with Acer, LG Electronics, Lenovo and HP Inc, are some of the key sellers of laptops in the Indian market.

A government source, who did not want to be named, told reporters shipments that have been ordered will be allowed without licences until August 31. The move is expected to benefit contract manufacturers like Dixon Technologies, whose shares rose more than 7% on the news.