{"id":257097,"date":"2023-08-23T21:07:41","date_gmt":"2023-08-23T15:37:41","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=257097"},"modified":"2023-08-29T12:06:34","modified_gmt":"2023-08-29T06:36:34","slug":"the-laptop-error","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/the-laptop-error\/","title":{"rendered":"The laptop error"},"content":{"rendered":"\n<p><strong>Source<\/strong>&#8211; The post is based on the article <strong>\u201cThe laptop error\u201d <\/strong>published in <strong>\u201cThe Times of India\u201d <\/strong>on <strong>23rd August 2023<\/strong>.<\/p>\n<p><strong>Syllabus: <\/strong>GS3- Indian economy<\/p>\n<p><strong>Relevance:<\/strong> Issues related to manufacturing and trade<\/p>\n<p><strong>News<\/strong>&#8211; Recently, India banned the import of personal computers, laptops and tablets. A licence would be needed to import a computer.<\/p>\n<h2><strong>What are the objectives behind this move of government?<\/strong><\/h2>\n<p>It is essential to diminish r<strong>eliance on imports <\/strong>and enhance <strong>domestic manufacturing<\/strong>. India must pressurise international corporations to establish<strong> production facilitie<\/strong>s within the country.<\/p>\n<p><strong>Security considerations<\/strong> come into play as well. 60% of imported computers are sourced from China. India also has a<strong> trade deficit of 100 billion dollars <\/strong>with China.<\/p>\n<h2><strong>Why has India not emerged as a major player in computer manufacturing?<\/strong><\/h2>\n<p>One significant factor is I<strong>ndia&#8217;s zero duty commitment to the 1997 IT agreement with the WTO.<\/strong> This commitment has adversely affected the hardware industry by attracting <strong>foreign-made computers<\/strong> due to the <strong>absence of tariffs. <\/strong><\/p>\n<p>Local computer manufacturers faced challenges in competing, due to <strong>substantial drawbacks such as inadequate logistics, infrastructure, and elevated costs associated with land, labour, and capital. <\/strong><\/p>\n<p>In contrast, China offered <strong>substantial subsidies <\/strong>to foreign corporations to establish manufacturing operations within its borders.<\/p>\n<p>The Government&#8217;s<strong> Production-Linked Incentive (PLI) schem<\/strong>e aimed at encouraging manufacturing has not yielded the <strong>desired outcomes.<\/strong><\/p>\n<p><strong>Way forward-<\/strong><\/p>\n<p><strong>Initiating conversation<\/strong> with the companies and establishing a <strong>six-month timeframe <\/strong>is a more <strong>constructive approach.<\/strong><\/p>\n<p>International manufacturers are also cautious about China and seeking <strong>alternative options.<\/strong> <strong>Disrupting China&#8217;s influence<\/strong> cannot be achieved abruptly. There exist<strong> more effective strategies<\/strong> to address <strong>national security apprehensions.<\/strong><\/p>\n<p><strong>Amendments to the PLI scheme<\/strong> are imperative. <strong>Emphasising local designs<\/strong> and <strong>incentivizing the relocation of component manufacturers<\/strong> to India should be prioritised. PLI agreements should incorporate a <strong>specified end date for high tariffs.<\/strong><\/p>\n<p>India must adopt the<strong> manta of push export rather than stop imports.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source&#8211; The post is based on the article \u201cThe laptop error\u201d published in \u201cThe Times of India\u201d on 23rd August 2023. Syllabus: GS3- Indian economy Relevance: Issues related to manufacturing and trade News&#8211; Recently, India banned the import of personal computers, laptops and tablets. A licence would be needed to import a computer. What are&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/the-laptop-error\/\">Continue reading <span class=\"screen-reader-text\">The laptop error<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,8184],"class_list":["post-257097","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704940409},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/257097","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=257097"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/257097\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=257097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=257097"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=257097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}