An undated editorial illustration of Indian rupee cash bills and a stock market indicator board.
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When India abruptly announced import restrictions on personal computers and laptops in early August, it caught major suppliers such as Apple, Samsung and Dell by surprise.
By curtailing imports from major hardware manufacturers, the move was ostensibly aligned with Prime Minister Narendra Modi’s commitment to boost manufacturing under his “Make in India” program and position India as a high-tech manufacturing hub for everything from consumer electronics to semiconductors.
Yet, these shades of protectionism seem at odds with India’s eagerness to burnish its global reputation as the country prepares to host leaders from the Group of 20 leading industrialized and developing economies this weekend.
At a time when shifting geopolitical alliances are elevating India’s strategic importance, such curbs add to the contradictions global investors have to negotiate as they hunt for viable alternatives to a slowing China.
There’s also been this creeping increase in protectionism — some of it have been random. You don’t understand why they’ve done it…
Pravin Krishna
Johns Hopkins University’s School of Advanced International Studies
“I don’t want to call it a mystery of the system, but it’s certainly a slightly paradoxical aspect,” said Pravin Krishna, a professor in international economics at Johns Hopkins University’s School of Advanced International Studies.
“On the one hand, the government has shown keen interest in international investment, and manufacturing being set up in India on the one hand, and to provide a set of incentives for these players to come in,” he added.
“There’s also been this creeping increase in protectionism — some of it have been random. You don’t understand why they’ve done it and these are not necessarily powerful industries,” Krishna said.
The new regulations — released on Aug. 3 — restrict the imports of laptops, tablets, “all-in-one” personal computers and “ultra small form” factor computers and servers. They were initially effective immediately, but later delayed to November.
There are some exemptions, including single purchases from online vendors.
Responding on X, the social media platform formerly known as Twitter, India’s information technology minister, Rajeev Chandrasekhar, said the regulations were aimed at ensuring that India’s technology ecosystem uses only “trusted and verified” systems that…
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