IT Hardware Import Authorization Policy Under Review: Piyush Goyal
New Delhi: Commerce Minister Piyush Goyal has confirmed that the Ministry of Electronics and Information Technology (MeitY) is still deliberating the new import authorisation guidelines for certain IT hardware products.
Speaking on the matter, Goyal said, “I think this is still under deliberation. It is handled by the Ministry of Electronics and Information Technology. I am not privy to what is in their mind for the future.” His comments come as the current import authorisation regime is set to expire on December 31, 2024.
In September, the Directorate General of Foreign Trade (DGFT) extended the deadline for the existing regime to the end of the calendar year and mandated that importers apply for fresh authorisations beginning January 1, 2025. However, earlier this month, a senior government official indicated that the Centre might extend the existing regime for certain IT hardware products, such as PCs, tablets, and servers, until the end of 2025.
IT Ministry Secretary S Krishnan stated, “The present scheme has been extended till December 2024. Beyond December also, it is to continue for one more year for the time being. We will review at the end of that period and somewhere through the calendar year 2025 and figure out what is to be done with the scheme next.”
The import regime, introduced by the DGFT last year, imposes restrictions on importing specific IT hardware items, including servers, computers, and data processing machines. Initially, the government required companies to obtain prior authorisation for such imports, citing national security concerns.
The regime was designed to encourage global technology giants such as Apple, Dell, and Lenovo to establish manufacturing operations in India, supporting the growth of the country’s IT hardware industry.
Since its introduction, industry stakeholders, including Apple, Dell, HP, and Lenovo, have urged MeitY to clarify the guidelines and reconsider the authorisation mandates. Responding to these concerns, the government extended the deadline from September 2023 to December 2024.
Meanwhile, reports suggest that the new import regime has impacted the overall import of IT hardware products. Between October 2023 and March 2024, imports decreased by 3.4% year-on-year (YoY) to $8.4 billion. However, imports from China remained steady at $5 billion, accounting for 58%-60% of the total imports during the period.
As discussions around the policy continue, the government is expected to take a call on the future of the import authorisation regime in 2025.
