The IT hardware industry is a divided house over the government’s decision to restrict the imports of laptops, tablets and PCs from November 1.
The Centre has asked top MNCs such as Apple, Dell, HP and Acer to switch over to local production that would lend credence to the Modi government’s Make In India vision, but the industry has sought more time for the change.
Sources said that there are differing views on the government’s move. Domestic contract manufacturers are optimistic the decision to regulate imports will give a boost to local manufacturing as global players may opt for partnerships with local companies.
“We currently hold the PLI for IT hardware and are manufacturing laptops for notable brands. With this move, we expect further expansion of our capacity to manufacture these devices,” said A. Gururaj, managing director, Optiemus Electronics Ltd.
A contrarian view is also doing the rounds.
“People who are celebrating today that this will boost local manufacturing of laptops may not have anything to celebrate if the six leading global brands are not keen to further invest,” said an industry observer.
The manufacturers do not want to speak publicly as discussions with the government are still ongoing. The government has asked the MNCs and other IT hardware players, who are seeking nine- to 12-month delay in implementing the new import licensing norms, to submit a phased plan to ramp up domestic production.
Officials said the ministry of electronics and information technology (MeITY) has asked the companies to submit their India manufacturing plans and suggestions on how the import of laptops and personal computers can be kept under check. The hardware industry officials told the ministry that they would need 9-12 months to set up manufacturing facilities in India.
Abhishek Jain, partner and national head, indirect tax, KPMG in India said; “The restriction on imports of prescribed IT hardware products should help provide a big boost to the Make in India campaign in this sector. With PLI also being announced for this sector, the domestic manufacturing of these IT hardware goods should witness a significant boost.”
Pankaj Mohindroo, chairman ICEA, allayed concerns over a split view and said that consultation is ongoing between the industry players, MEITY, DGFT and Union commerce ministry even as the industry was caught by surprise by the immediate implementation of the notification.
“The industry is united to discharge its responsibilities of taking India to the higher table of IT hardware manufacturing as we have done in smartphone and mobile phone manufacturing,” he said.
“When the government is open to listening to everything, then there is no question that three months are not enough or 1 year is required. Whatever are the concerns of the industry even if one concern is left unanswered that will not be a satisfactory position,” he told CNBC TV-18.