Regulatory Environment and Challenges
Restrictions on Electronics Import
- India reaffirms restrictions on import of certain electronics and IT goods, according to a recent Commerce Ministry notification dated May 20.
- The import of unregistered, non-compliant notified products in Electronics and IT Goods is prohibited.
- The restrictions have been in place since 2021 and were updated with requisite notifications.
Compliance and Safety Standards
- BIS certification is generally voluntary but may be made mandatory to protect human, public interest, or prevent unfair trade practices.
- The certification ensures that products imported into the country are safe.
- For an importer, BIS certification ensures there aren’t any procedural delays at the customs.
Industry Impact and Opportunities
Growth Prospects and Strategies
- India’s electronic manufacturing sector is expected to grow 41% by FY26 due to increased imports from China.
- The global shift towards India is driven by the “China+1” approach, where companies are diversifying their manufacturing bases.
- The report highlights the importance of India as a manufacturing hub, with the potential to attract more foreign investment.