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US Raises Concerns about India’s Import Regulations on IT Goods

The United States of America expressed concerns regarding India’s import regulations for specific information and communications technology (ICT) products such as automatic processing machines, and PCs. This concern arises amidst India’s decision to restrict the influx of such items. So, importers must obtain authorization for certain IT hardware imports. How much does India depend on the U.S. for IT goods? Let’s understand the trade between India and the US of IT products from global trade data and valuable statistics.

According to a report, American exporters have raised worries about the lack of prior stakeholder consultations on these matters. India’s application of quantitative restrictions has been unpredictable and opaque which could impact the market accessibility for US exporters.

US Exports Data Processing Machines to India

US exports of data processing machines to India increased to USD 648 million in 2023 from USD 433 million in 2021. India has been majorly dependent on the imports of IT goods from the United States for past years, but the country is focusing on a self-reliant approach reducing imports and increasing local manufacturing. The chart given shows US exports data processing machines to India with year-wise values.

US Exports PCs to India

The United States also exports Personal Computers to India. In 2023, American companies supplied PCs worth USD 12 million to India. That dollar amount increased as compared to the previous years. Visualize year-wise values of US exports PCs to India.

US Exports Data Processing Machines to the World 2023

The United States is one of the major exporters of data processing machines. American suppliers departed shipments of data processing machines to the world worth USD 30,553 million in 2023. The top export destination of American data processing machines in 2023 were Canada, Mexico, the Netherlands, the United Arab Emirates and Singapore. See data visualization of these countries.

India Imports Data Processing Machines from the World 2023

India imported data processing machines worth USD 9,413 million from the world in 2023. China was the top import source of data processing machines, followed by Singapore, the United States, Malaysia, and Thailand. Gain access to the values of these countries.

Why India Put Import Restrictions on IT Goods?

  • The government wants to ensure that only trusted & verified hardware and systems are imported in the country.
  • It wants to reduce import dependence and increase domestic manufacturing.

India is expected to reduce its dependency on imports of laptops, tablets, and other IT products and increase local manufacturing. This will help the country’s economy to grow, increase employment opportunities, and boost trade as well.

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