On Thursday 4 Aug 2023, India said that it will impose some restrictions on imports of electronics from Tech giants like Apple, Samsung, and Dell, they all have to acquire an importing license from India. Orders that have been dispatched can enter the country till Aug 31 but later the date was extended till Oct 31, the licensing restrictions will be imposed from Nov 1 onwards. According to United Nations COMTRADE database, India’s import of electronics in 2022 stood at US$ 69.68 Billion.
The government of India didn’t give any reason for this restriction, but this rising electronic’s trade graph clearly explains that it conflicts with PM Modi’s vision of “Made in India” as India wants to be a major electronics exporter by 2026 with an annual production of US$ 300 Billion. “The move’s spirit is to push manufacturing to India. It’s not a nudge, it’s a push,” – Ali Akhtar Jafri, former director general at electronics industry body MAIT. India is currently the fifth largest economy with a GDP of US$3750 Billion and an annual growth rate of 5.9 percent, India might give a tough challenge to Japan and Germany which are now the third and fourth largest economies.
Also, India’s license policy is to address two major issues regarding China i.e. Trade Imbalance and Security concerns. According to COMTRADE, India imported US$ 30.63 Billion worth of electronic equipment from China in 2022, and PCs and tablets imports stood at US$ 10 Billion. This dependency on China could be harmful to India, a country that wants its trade more export oriented.
China Techgiant Huawei is globally accused of spying on its users through backdoor computing attacks. Recently, Pinduoduo app is accused of cyber espionage in India. Due to growing cybersecurity concerns, India is taking a step back by becoming more dependent on its home-based technologies.
Author: Muhammad Ramish has done two years of training at Pakistan Military Academy, Kakul. He has keen interest in Pakistan affairs as well as foreign affairs.
