India's Policy Flip-Flops Hampers Tech Manufacturing Shift

The government's inconsistent policies on laptop import restrictions have increased business uncertainty, making it difficult for global tech firms to shift manufacturing to India. Despite the WTO's ITA-1 agreement limiting tariff hikes, a consistent policy is needed to promote local manufacturing. Recent extensions in import authorizations have further delayed implementation.

The government's policy flip-flops on restricting imports of laptops and similar products have increased business uncertainty and costs, reported the think tank GTRI on Wednesday.

A decisive and consistent policy is crucial to encourage global technology companies to shift manufacturing units to India and build a robust electronics supply chain, the report added.

The government has announced multiple extensions of import authorizations, undermining efforts to implement a clear Import Management System (IMS), which has stymied local manufacturing growth.