Laptop manufacturers risk having their import quotas reduced if they fail to submit regular updates to the government on their plans for manufacturing it in India. With an emphasis on localisation or sourcing from reliable sources, the government has launched a "import management system" for businesses bringing electronics into India.
“It has been made clear to the companies that they will need to walk the talk on their India manufacturing plans spelt out under the revised production-linked incentive (PLI) scheme. If they delay their investments or continue to rely just on imports, restrictions are likely to be placed on their shipments, while their quotas run the risk of being curtailed,” a source said. “There will be routine reviews, where the government will assess the compliance on this front.”
S Krishnan, the secretary for electronics and IT, said reporters that a number of applications had fallen under PLI and were being evaluated; the review process would take a month or two to finish.
The reason for the government’s insistence on kick-starting domestic production of laptops is reliance of companies on China for both fully-built units and components. “The government is categorical in its insistence that companies either start manufacturing here, or else start respecting the ‘trusted source’ norm, which means procuring from regions beyond China.”