New Delhi: After the India introduced restrictions on tech imports, a broad group of United States businesses from Apple to Intel on Saturday protested against the move. They said that this surprise move will impact the New Delhi’s goals of becoming a global manufacturing hub and harm consumers.
Eight major American trade groups, representing prominent players in the technology and manufacturing sectors, have collectively sent a letter to US officials this week. The letter urges the US Department of Commerce, the US Trade Representative, and the broader government to persuade India to reconsider its new policy.
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This policy involves imposing a fresh requirement for licenses on technology imports starting from November 1. The license requirement is intended to cover a wide range of items, including laptops, tablets, servers, and components for data centers.
The joint memo from these trade groups, reviewed by Bloomberg News, expresses concerns about the potential consequences of this move. The groups believe that this new policy could disrupt trade significantly, impede efforts to integrate India into global supply chains more effectively, and negatively impact businesses and consumers in both India and the US.
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Initially, the licensing regime was enacted with immediate effect earlier this month. However, authorities later granted a three-month extension, allowing companies additional time to obtain the necessary licenses.
This development is unfolding just before a significant business gathering scheduled in New Delhi. This event marks the conclusion of India’s G20 presidency and has been highlighted by Prime Minister Narendra Modi’s global tour to enhance trade relations with countries like the US and France.
Prime Minister Modi has been actively working to strengthen bilateral trade ties, and his efforts have been reciprocated positively, especially during his visit to the US where he engaged with President Joe Biden.
