**Import Management System for IT Hardware Extended by One Year**

**New Delhi:** The Directorate General of Foreign Trade (DGFT) has extended the **Import Management System (IMS)** for IT hardware products by one year, a move aimed at balancing domestic production and demand.

### **Extension of Import Management System**

The IMS, which applies to seven IT hardware products including laptops, tablets, all-in-one personal computers, ultra-small form factor computers, and servers, will now be valid until **December 31, 2024**.

According to the DGFT notification, importers will need to obtain fresh authorization for the coming year.

### **Focus on Domestic Production under PLI Scheme**

A senior government official stated that while there are no major changes in the extended system, the government will closely monitor the progress of domestic production under the **Production-Linked Incentive (PLI)** scheme for IT hardware.

Notably, two global tech giants plan to begin manufacturing in India by April 2025. The government will evaluate whether companies meet their proposed production targets under the PLI scheme.

If targets are not met, import restrictions could be introduced later in the year. However, officials assured that there would be no disruptions to supply during this process.

### **Validity through December 2025**

The application window for new import authorizations will open on **December 13**. As per the DGFT, *“Any authorization for restricted IT hardware imports under IMS will remain valid until December 31, 2025, and importers may submit multiple applications throughout the year.”*

### **Reducing Dependency on China**

The IMS was initially introduced in **August 2023** to reduce India's reliance on Chinese imports. Following resistance from industry stakeholders and key trade partners like the United States, the system was implemented in **November 2023**, featuring an end-to-end online authorization process.

Authorization decisions will depend on monitoring the level of domestic manufacturing, with updates to be communicated via the IMS.

### **Global Pressure and Challenges**

Industry officials noted that the U.S. has been pressuring India to maintain transparency in its import monitoring system. Additionally, the potential return of Donald Trump as U.S. President could complicate trade relations. In this context, maintaining the current policy status may be a prudent approach.

### **Industry Reaction**

Ajay Sahai, Director-General and CEO of the Federation of Indian Export Organisations (FIEO), welcomed the extension as a balanced step. *“The government is effectively balancing the promotion of domestic IT hardware manufacturing while ensuring that domestic demand is met through imports,”* Sahai said.

### **Imports and Dependency on China**

In the financial year 2023-24, imports of the seven IT hardware products totaled **$8.7 billion**, with China accounting for nearly **60%** of the share. For personal computers, Chinese imports comprised approximately **80%** of the total. The IMS extension reflects India’s commitment to boosting domestic production while addressing its growing IT hardware demand, marking a crucial step towards self-reliance in the technology sector.