The central government intends to supply up to 70% of the country's need for IT hardware through domestic production over the next three years, reducing reliance on untrustworthy imports, according to Rajeev Chandrasekhar, minister of state for electronics and IT. "At present, almost 80% of our supplies to the digital ecosystem come from imports and only 8-10% of our supply requirement comes from India. We want to make that 65-70% in the next three years," the minister added. 

 

Close to 40 businesses, including global behemoths such as HP and Dell, have sought to set up factories to manufacture personal computers, laptops, tablets, servers, and other equipment under the IT hardware PLI (productivity linked incentive) scheme. During the scheme period, the value comes to roughly Rs 4.65 lakh crore. Import restrictions are likely to result in an increase in domestic investment.

 

Chandrasekhar said a draft of IT hardware import rules will be discussed with industry players later in the day as part of the strategy to reduce dependence on imports from non-trusted sources, which is an oblique reference to China, as per economic times.

 

Senior authorities have stated that India's trade gap with China has reached unsustainable proportions, and that imports from the Asian neighbor must be reduced. The government has already announced a ban on imports, with a three-month transition period until October 31 before a new licensing scheme for imports of laptops, tablets, and personal computers takes effect.

 

The government has issued a notification stating that import consignments can be cleared without a license until October 31, and that import clearance would require a government authorization beginning in November.