The US, China, South Korea and Taiwan on Monday raised concerns at India’s import restriction on computers, tablets and other electronic products. At a meeting of the committee on market access at the World Trade Organization (WTO), the US said the measure prompts its firms to think twice about doing business in India and it would impact its exports while China and Taiwan sought the purpose of this policy.
“The US said that the surprise import licensing requirements without notice or opportunity for public comment prompts its firms to think twice about doing business in India,” said a Geneva-based official.
Washington also said that such moves will make it harder for India to generate the type of manufacturing jobs it intends to create and would impact its exports to New Delhi. It raised concerns at the absence of notice or opportunity for public comments
New Delhi, had in August, imposed import restrictions on laptops, 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 licensing conditions on imports were put on the grounds of security and to spur domestic manufacturing of these products. India now plans to put in place an import management system, which will come into place from November 1.
India imported IT hardware products worth $8.8 billion in FY23, with China accounting for more than half at $5.1 billion, followed by $1.3 billion from Singapore.
As per the official, Beijing has asked India to clarify its changing measures and the purpose of this policy.
“South Korea said that the measure seems inconsistent with WTO rules and could create unnecessary trade barriers,” the official said.
Seoul requested India to reconsider the implementation of these measures and provide detailed clarifications and information on this issue, including its timeline.