Rajeev Chandrasekhar, Union Minister of State for Electronics and Information Technology, while speaking to CNBC-TV18 during the Digital India Vision 8.0 event on Friday (August 18) provided insights into the government's strategic approach to import management and its implications for India's digital economy.

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Chandrasekhar clarified that recent notifications pertaining to import restrictions were misconstrued, emphasising that the intent was not to hinder imports but to establish a robust framework for import management.

The government on August 3 imposed import restrictions on laptops, tablets, and certain types of computers with immediate effect for security reasons and the need to promote domestic manufacturing.

"I think this was communicated incorrectly. This is not about import restrictions at all," Chandrasekhar acknowledged, as he expounded on the significance of securing trusted hardware within India's expanding digital landscape.

He stressed the importance of meticulous control over the sources of imported hardware, thereby ensuring the reliability of digital devices and equipment in the country.

"This is not about licensing at all. This is really our attempt to create a framework of important management to understand the sources from which we want to regulate, essentially, at a time when we're at an inflection point of the digital economy growing and the digital penetration of digital devices in India really ramping up and growing rapidly. We want to be extremely careful about the sources of the devices."

Chandrasekhar underscored the dual objective of the government —promoting domestic manufacturing and facilitating imports from nations that align with India's strategic interests.

"We want to encourage more and more of the server brands and the solar companies and the laptop and device companies to manufacture in India, and if not manufacture in India at least go to a trusted place where they manufacture which is comfortable to us. So I think this is more of an important management framework."

He expressed a commitment to industry consultations and a non-disruptive transition towards achieving these objectives.

Highlighting the pivotal role of the import management framework, Chandrasekhar elucidated how this measure was aligned with India's rapid digitisation and the exponential growth of digital devices.

"This is the right time to create an import management framework, especially given the upward trajectory of hardware systems in core IP networks," he stated.

When pressed about the connection between import management and the Production Linked Incentive (PLI) scheme, Chandrasekhar dispelled any direct linkage while acknowledging the fair misunderstanding. He reiterated that the focus remained on ensuring trusted products and stimulating domestic manufacturing in a systematic manner.

Addressing industry concerns and timelines, Chandrasekhar's approach remained pragmatic. He assured that any decision would be made after thorough industry consultations and the government's intention to avoid causing disruptions.

The conversation also touched upon Elon Musk's interest in India. While Chandrasekhar didn't have insider information, he voiced his belief that India was indeed an attractive destination for Tesla's manufacturing ventures.

First Published:Aug 18, 2023 9:09 PM IST