EDITORIAL ANALYSIS  02 NOVEMBER 2023 

THE INDIAN EXPRESS:

Licence Raj related to Laptop Imports:

 Context:

 Government. does well to examine and update its policy on the imposition of licence requirements on
imports of laptops.

 First of all:

 With immediate effect, the central government issued an order in August requiring licences for the
importation of laptops, tablets, and other gadgets.
 The action was purportedly justified on two grounds: first, to support homegrown industry; and
second, to limit imports from China.

 Fears related to the relocation:

 Fears were expressed that such a system would force India back decades to a period when many poor
economic policy ideas can be traced, open the door for arbitrary action in other areas, and result in the
implementation of import restrictions.
 As a result, the government postponed the date on which the licencing requirement would be
implemented.

 Renowned Licence Raj:

 Between 1947 and 1990, India had the Licence Raj, also known as Permit Raj, which was a system of
rules and licences necessary for starting and operating a business, along with the associated red tape,
delays, and corruption.
 This required obtaining a government licence in order to open for business.

 Comments from around the globe:

 Critics of the divisive policy were coming from all directions. For example, nations including the US,
China, South Korea, and Taiwan voiced reservations about this move at a recent conference of the
World Trade Organisation. The government's stance on the matter has since changed. Thank you for
this.

 A new system for managing imports:

 It unveiled an import management system for PCs and laptops, or IT hardware, on Thursday.
Companies will only be required to register and disclose information about their imports and the
country of origin under the new system.
 This paper reports on how the system will support import monitoring and guarantee that goods
originate from reliable sources. Among other things, there are exclusions for hardware required for
capital products and special economic zones.
 Importers will have an easy time using the faceless and contactless technology. Nevertheless,
authorization for imports will not be granted to businesses on the "denied entity list."

 Way ahead:

 An incentive programme for IT gear based on production has already been established by the
government. Furthermore, a number of businesses—including original equipment manufacturers and
contract manufacturers—have reportedly applied for the programme.
 A more sensible course of action would be to improve the conditions that support the growth of a
robust and dynamic industrial ecosystem. The goal of the policy framework should be to guarantee
increased transparency and operational flexibility.