Startled by the negative response, the government promptly postponed the licence system’s implementation until November; as a result, the majority of the restrictions were lifted until September of the following year.
Source: NDTV
The industry has applauded this decision, claiming that it is a step in the right direction toward integrating with global supply chains, protecting consumer interests, and increasing domestic production in harmony. The government’s desire to cut red tape for the good of all parties involved is commendable, but the retreat is an acknowledgment that India still has a ways to go before it can become self-sufficient and a hub for electronics production that can compete on a global scale.
In 2022u20132023 India imported $5.33 billion worth of personal computers, down from $7.37 billion in 2021u20132022. China leads the list of nations from which these commodities are imported, with Hong Kong and Singapore following closely behind.
Source: CNBC- TV 18
The best course of action is to encourage home production in light of the security concerns surrounding Chinese goods and the need to continuously lower the import bill. The production-linked incentive program 2.0 for IT hardware was authorised by the government in May, with a financial commitment of Rs 17,000 crore. The largest obstacle is producing goods that are affordable and up to international standards. The government believes that more production will occur domestically, increasing overall supply and either stabilising or lowering costs. The consumer would benefit in that scenario.
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