The government is going to initiate a pilot project aimed at positioning India as an electronics repair hub by relaxing import-export regulations. The move is expected to attract major technology companies to expand their operations in the country.
The government, through the Manufacturers’ Association for Information Technology (MAIT), will test regulatory changes aimed at reducing the time required for import and export approvals from up to 10 days to just one day. India will also allow the re-export of imported electronics goods to countries other than their original destination, which is currently prohibited under foreign trade rules.
Additionally, the government plans to address other bottlenecks, including an e-waste mandate that currently prohibits local disposal of non-repairable products. It intends to permit the domestic recycling of 5 per cent of imported goods as a trial initiative.
According to MAIT, the government has agreed to streamline the approval process, facilitating timely clearances with tax authorities. This will enable devices to enter India for repairs and be swiftly shipped back. In addition, repair outsourcing would incentivise electronic manufacturers to expand their production capabilities in India, thus bolstering supply chain resilience. The association estimates the repair industry in India to be valued at $20 billion within five years.
The escalating repair costs in regions such as Europe and the US are prompting companies to send goods overseas. India, with its lower labour costs, possesses a total cost advantage of 57 per cent over China and 26 per cent over Malaysia, both of which currently dominate global repair outsourcing.
