Apple, Samsung halt India laptop imports after sudden curbs

Following India’s surprise restriction on inbound shipments without a license, several of the major brands have suspended new laptop and tablet imports to the South Asian nation, including Apple Inc., Samsung Electronics Co., and HP Inc.

Regulators shocked the largest PC manufacturers in the world on Thursday by requiring licenses for the import of electronics, ranging from small tablets to all-in-one PCs.

The abrupt licensing imposition caught the industry off-guard, according to people familiar with the situation who declined to be named owing to the sensitivity of the subject. Laptop manufacturers had been bracing for some government steps aimed at reducing reliance on imports and encouraging local production.

As India’s Diwali shopping season and back-to-school season approach, IT companies are already consulting with New Delhi on how to secure licenses as swiftly as possible at a time of increased consumer demand, the public said.

Requests for comment from Apple, Samsung, and HP representatives as well as the Indian commerce ministry went unanswered right away.

According to a senior official from the technology ministry, companies bringing laptops, tablets, and other IT equipment into India from outside will have at least one month to apply for import licenses. The government is simplifying the process of applying for licenses which can be approved, in as little as a day, the official added.

As the halt threatens to disrupt a multibillion-dollar trade in foreign PCs at a key time, officials are also assisting businesses with the clearance of shipments currently in transit to the South Asian nation.

Manufacturers already struggling with a global inventory surplus and a lack of catalysts to restart sales growth now have to deal with the additional requirement. It could lead to postponed India launches or possibly product shortages in a market that is still heavily dependent on imports.

The import limitation is one of India’s recent policy u-turns and complements other, more established regulations aimed at discouraging the import of foreign electronics. Its primary goal is to help achieve long-term goals of developing a renowned global tech manufacturing sector.

In order to attract manufacturers of laptops, tablets, and other hardware to the most populous country in the world, Prime Minister Narendra Modi’s administration is presently accepting applications for a 170 billion rupee ($2.1 billion) financial incentive program as businesses attempt to diversify their supply chains outside China.