Amid concerns of a 4-5 per cent price increase in laptops, personal computers, and tablets due to import licensing, the government has asserted that it does not anticipate such a rise. Officials clarified that the number of units imported into the country would not be restricted, and clearances would be processed quickly, typically within minutes.
Additionally, the government emphasized that overseas players and domestic suppliers possess the capacity to manufacture these devices in India, which could be put to use. Companies will have the freedom to import as much as they require from multiple locations, without any caps on quantities.
The government plans to review import curbs periodically, ensuring that they are not imposed indefinitely. The second production-linked-incentive scheme for the sector is also expected to encourage more players to enter the market, further boosting domestic manufacturing and reducing the need for imports.
While the Directorate General of Foreign Trade (DGFT) has implemented the licensing process, companies are closely monitoring it and anticipate potential scrutiny of some Chinese players. Companies may seek licenses for larger quantities to safeguard against uncertainties caused by government actions.
With the anticipated increase in demand, companies expect retailers to raise prices by around $20-40 (Rs 1,700-3,400) for basic laptops and higher for high-end devices popular among gamers.
While setting up a basic “screwdriver” assembly unit might take nine to 12 months, the PLI scheme offers companies the option to collaborate with domestic players, allowing them to begin production with some investment in Indian entities counted towards capital expenditure.
Companies are expected to start with assembly of entry-level sets and gradually move up the value chain in the coming years. Establishing a strong vendor base will take time, as some components like displays, wiring, key caps, and packaging material are currently sourced from India, while a significant portion of parts and devices comes from China, with contributions from Malaysia, Vietnam, and South Korea.
Source By: economictimes
