Import of Chinese computer gear to hit five-year high

BENGALURU: Despite the efforts of the government to boost manufacturing of computer hardware in India, data from the Indian Electronics and Cellular Association (ICEA) and Ernst & Young shows that imports from China are likely to cross a five-year high at $5 billion in FY21. 

The ICEA-EY report stated that India’s import of laptops has increased by 42 per cent—from $ 2.97 billion to $ 4.21 billion—in value terms, in the last five years. 87 per cent of this continues to come from China. For tablets, the report reveals that two-thirds of the tabs sold in Indian markets come from China.

India imported laptops  worth $1.2 billion from China for the quarter ending July 2020 and these imports have increased from $ 2.83 billion to $ 3.65 billion during the last five years.  For the year ending March 2021, India’s import of laptops is estimated to reach close to $5 billion, wherein those from China are expected to hit $4.35 billion. The import-export imbalance is even more stark for tablets. 

Five years ago, imports were $0.34 billion. This increased by approximately 20 er cent to $0.41 billion for the year ending March 2020. Exports, in comparison, have more than halved over the last five years, from $0.06 billion to $0.024 billion––over a 50 per cent drop.

India is expected to import tabs worth $0.35 billion in FY21. In FY20, India imported tabs worth $0.26 billion from China alone, constituting 63 per cent of the exports. The global manufacturing hubs are limited to a handful of countries, with China being the predominant supplier to the world 66 per cent market share (2019): $ 100 billion in value, the report noted.

Incentives for local manufacturing needed
Appropriate incentives focused on export-oriented laptop manufacturing should be offered and calibrated focused policy interventions need to be made, the report says

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