India Delays Tech Import License; Proposes Streamlined Registration Amid Industry, US Concerns

India revises tech import policies after Apple, Samsung, Dell, and HP, alongside U.S. officials, voice concerns. The move, impacting billions in electronics trade, seeks to balance local manufacturing aspirations with multinational tech demands. A streamlined registration system will replace earlier licensing plans later this year.

Initially announced on August 3, the licensing regime aimed to promote the entry of trusted hardware and systems into India, reduce import dependency, boost local manufacturing, and address the trade imbalance with China. However, industry objections prompted a swift delay of about three months.

Last month, U.S. trade chief Katherine Tai raised concerns with Indian officials regarding the controversial move. In response to the feedback received, India's electronics ministry is now proposing a simpler import registration process set to begin in November.

The proposed system would require companies to obtain "registration certificates" for importing laptops, tablets, and personal computers, eliminating the need for the previously suggested licenses.

During a recent meeting on Friday, the ministry shared this proposal with industry representatives. The new system is expected to streamline the process and alleviate concerns raised by major tech manufacturers. An immediate response from India's IT ministry was not available during reporting.

From April to June, India's electronics imports, including laptops, tablets, and personal computers, reached $19.7 billion, marking a 6.25% increase compared to the previous year.

As the plan to implement an import licensing regime faces further delay, the Indian government will reassess its viability after a year, according to two government officials. This move aims to strike a balance between encouraging local manufacturing and meeting the demands of multinational technology companies.

The decision to defer the license requirement showcases the government's willingness to consider industry feedback and optimize trade policies to foster growth in the tech sector. The revised import registration process is set to take effect later this year.

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