Several major technology companies, including Apple Inc AAPL, Samsung Electronics Co SSNLF, and HP Inc HPQ, have halted new imports of laptops and tablets to India following a surprising ban on inbound shipments without a license.
Laptop makers were expecting some government measures to reduce reliance on imports and promote local production, but the sudden imposition of licensing requirements has disrupted the industry, Bloomberg reports.
Tech firms are now engaging with New Delhi to quickly obtain licenses, especially with the Diwali shopping season and the back-to-school period approaching.
The ban has added challenges for manufacturers already facing a global glut of inventory and sluggish sales growth triggers. This move may lead to delayed product launches or shortages in a market heavily relying on overseas shipments.
The import restriction marks India's efforts to reduce import dependence and foster a world-class tech manufacturing industry. Prime Minister Narendra Modi's government is seeking applications for a 170 billion-rupee ($2.1 billion) financial incentive plan to attract laptop, tablet, and hardware manufacturers to the country as companies seek to diversify their supply chains beyond China.
The sudden policy shift coincides with Samsung, Apple and its suppliers, and other U.S. companies' preference towards the country to diversify their supply chain base.
Price Action: AAPL shares traded lower by 1.72% at $187.88 premarket on the last check Friday.
Photo via Wikimedia Commons
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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