US Raises Concerns With India on IT Hardware Import Restrictions

New Delhi, Mar 29 - The United States has voiced its concerns to India regarding the import regime for certain information and communications technology (ICT) products, including laptops and tablets. This comes in the wake of India's decision to impose restrictions on the inbound shipments of these products. Currently, importers of specific IT hardware goods into India require authorization.

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The US's National Trade Estimate Report on Foreign Trade Barriers 2024 highlighted that American exporters are troubled by the lack of prior consultations with stakeholders on these issues. The report criticizes the unpredictable application of quantitative restrictions by India, which has hampered US exporters' market access. The United States, along with other trading partners, continues to address this issue at the World Trade Organisation (WTO), emphasizing the need for greater access to the Indian dairy market through the trade policy forum (TPF).

Furthermore, the report points out India's absence of a comprehensive government procurement policy, leading to varied practices and procedures across different ministries within the central government. On intellectual property rights (IPR), it notes ongoing engagement between America and India to enhance IP protection and enforcement in India.

In the services sector, particularly insurance, the report accuses India of maintaining an uneven playing field. It also raises concerns over policies in electronic payment services that seem to favor domestic suppliers over foreign ones. On telecom services, the US encourages India to adopt an open skies satellite policy to facilitate market access for foreign satellite service providers.

Since 2021, US firms have faced an increasing number of politically motivated takedown requests for content and user accounts in India. The IT Rules have introduced several requirements that concern US stakeholders. The report also mentions a lack of transparency in new and proposed laws and regulations, affecting stakeholders' ability to provide input or adjust to new requirements.

United States Trade Representative Katherine Tai released the 2024 National Trade Estimate Report on Foreign Trade Barriers (NTE Report), offering a detailed review of significant foreign barriers to US exports, investment, and e-commerce in key markets. This annual report has been published since 1985 and covers significant trade barriers in 59 markets.

On August 3 last year, the Indian government announced import curbs but deferred the decision on August 4, 2023, following industry concerns. The licensing regime is set to commence from November 1. Subsequently, on October 19 last year, the government adjusted rules on laptop and computer import curbs, allowing importers to bring in IT hardware shipments from overseas with mere authorization upon detailing quantity and value.