The Register reported that the Indian government has abandoned its plan to require manufacturers of personal computers, tablets, and servers to obtain import licenses. The plan was announced in early August (without prior consultation), and Apple and Samsung responded by halting shipments to India. The U.S.-based technology trade association later accused the Indian government of failing to provide advance notice or consultation.
It was noted that Indian Commerce Minister Sunil Barthwal previously stated at a press conference that the plan is not to restrict imports to encourage manufacturers to build factories in India, but is just a monitoring plan.
India has attracted a large number of smartphone makers to the country, but has had little success with computer makers. In 2021, Dell, Foxconn, Wistron and Flextronics signed a production incentive agreement covering servers and PCs.
HPE has also agreed to build $1 billion worth of servers in India over five years, and Cisco has committed to building kits of the same value.
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In August 2022, Indian IT Minister Rajeev Chandrasekhar admitted that he was disappointed with the adoption of India’s incentive program for enterprise hardware players and would reconsider the proposal.
As a result, India is using one of the oldest trade tactics of increasing costs, forcing manufacturers to pay more attention to local industries.
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