The Indian government is taking steps to boost domestic electronics production by introducing import licenses for laptops, computers, and tablets. The Directorate General of Foreign Trade has announced import restrictions on these devices, including ultrasmall form factor computers, servers, and data processing machines. However, there will be exemptions for certain purposes such as research & development and product development.
This initiative comes after Prime Minister Narendra Modi’s announcement of a $2.1 billion incentive plan to attract computer manufacturers to India. The plan includes a 5% cashback offer to companies based on finished product prices and financial benefits for local component sourcing.
Decline in PC shipments
The PC market in India has seen a significant decline, with a 30% year-on-year decrease in the first quarter of 2023. The consumer segment experienced a downturn of 36.1%, while the commercial segment declined by 25.1%. This decline can be attributed to slowing demand, low market sentiment, and reduced procurement by enterprises and SMEs.
All of the top five PC market players in India witnessed a decline in their market share during the quarter, with Dell Technologies experiencing the largest slump of 49.8% in unit shipments.
Navkendar Singh, Associate Vice President of Devices Research at IDC India, South Asia & ANZ, explains that the sluggish PC demand is a result of SMEs delaying procurement due to a credit crunch and enterprises deferring purchases amid recession fears. However, it is expected that the PC market in India will gradually recover from late 4Q23 onward.
Source: IDC
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