India moves to restrict imports of Apple's MacBook Pro
India wants to sharply cut imports of laptops like the MacBook Pro in order to force all technology firms to boost local manufacturing.
Foxconn facilities will play a key role in Apple's expansion into India -- image credit: Foxconn
A similar plan to restrict imports of personal computing products was proposed last year, but the government delayed it after protests from Apple and other tech companies. According to Reuters, sources within the local government say that India plans to open consultations with manufacturers from late October.
The plan is certain to be met with the same resistance as the 2023 attempt. However, companies require a licence to import products into India, and those licences are currently set to expire at the end of 2024.
Consequently, firms will have to re-apply for approval regardless of what new conditions the government imposes. The unspecified sources say that India believes the industry has had sufficient time to adapt to the requirements bolstering domestic production.
"We are working on such restrictions as global treaties stop us from any tariff action on laptops and tablets," said a source. "It leaves us with few policy options to limit imports."
However, the sources also said that they could delay implementing the import restrictions by a few months if necessary.
Currently, India gets two-thirds of its personal and business technology needs met through imports. As part of the new plan, the government is also considering new minimum quality standards to help restrict the flow of cheaper imports, mostly from China.
India's moves to get more manufacturing done within the region comes as Apple is expanding its production there. At present, though, that local manufacturing is concentrated on the iPhone.
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Comments
It’s not like India has any competition for apple. Just an asinine decision.
The problem India has is that there is a huge trade deficit with china (i.e. India imports significantly more from china than exports to china in the ratio of almost 1:5). And this is increasing further (though at a slower rate than before due to govt efforts). This trade deficit causes havoc in the country triggering inflation, depreciating currency etc. The main reason for this deficit used to be - mobiles, toys and other electronics. The first two have been taken care of - India is now second largest manufcturer of mobiles, and toy manufacturing is also significantly increased.
But the other electronics, with laptops being a major component, is something the govt is looking to balance out a little now.
Dealing with a supply chain monopolist like China has only meant ever-increasing trade deficit with U.S. debt. rising to record trillions of dollars. No one really knows how long this can go on with interest on national debt getting larger yearly. Supply chains need to be moved out of China in while balanced trade is negotiated in return.
Hopefully the realignment of supply chains will continue gradually, not like what Trump is suggesting with a sudden 100 to 200% increase in tariffs. The US consumer would pick up the tab on the resulting sudden inflation. A major recession would probably follow suit. It may be better to continue with slow but steady stick and carrot approach encouraging diversification of manufacturing coupled with renegotiation of trade deals from these other countries. They would have incentive then to compete for contracts and bargain in good faith to negotiate equal sided trade deals.