US, Korea raise concerns on India’s decision to impose import restrictions on laptops, computers

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US, Korea raise concerns on India’s decision to impose import restrictions on laptops, computers

The US has stated that the decision will have an impact on trade of these products, including US exports to India, once they are implemented.

Representative image
Representative image

The US, China, Korea and Chinese Taipei have raised concerns on India’s decision to impose import restrictions on laptops, and computers, in a meeting of the World Trade Organisation (WTO), officials told news agency PTI. The concerns were flagged in the meeting of WTO’s Committee on Market Access. It was chaired by Renata Crisaldo of Paraguay on October 16, in Geneva, said the news agency.

The US has stated that the decision will have an impact on trade of these products, including US exports to India, once they are implemented, according to the report. US has also said that the decision is creating uncertainty for exporters and downstream users.

On August 3, India decided to impose import restrictions on a host of IT hardware products as laptops, personal computers (including tablet computers), micro computers, large or mainframe computers, and certain data processing machines with a view to boost domestic manufacturing and cut imports from countries like China. The regime was to come into effect from November 1.

Also Read: Government restricts import of laptop, computers, tablets

However, Commerce Secretary Sunil Barthwal last week said that India will not impose licensing requirement on imports but will only monitor their inbound shipments. The official said that Korea stressed that the proposed measures by India seem inconsistent with WTO rules and could consequently create unnecessary trade barriers.

“India will not impose restrictions on laptop imports,” Trade Secretary Sunil Barthwal told a press conference on Friday, October 13. He said the government “only wants importers to be on close watch.”

The import licensing regime, announced in August, aimed to “ensure trusted hardware and systems” enter India, but it was delayed by three months after objections from industry and criticism by US. It would affect companies such as Dell, HP, Apple, Samsung, and Lenovo.

Seoul requested India to reconsider the implementation of these measures and provide detailed clarifications and information on this issue, including the timeline of its implementation.

India imports about $7-8 billion worth of these goods every year. The country has imported personal computers, including laptops, worth $5.33 billion in 2022-23, as against $7.37 billion in 2021-22.

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Updated: 17 Oct 2023, 05:35 PM IST
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