India delays shock move to curb imports of laptops, tablets

India backtracked Friday on its sudden plan to curb laptop and tablet imports without a license, giving companies three months to secure the permits.

The move came after tech giants Apple Inc., Samsung Electronics Co. and HP Inc. froze new device imports to the South Asian country following an abrupt order on Thursday.

India’s trade regulator surprised the world’s biggest PC makers when it made licenses mandatory for import of electronics from small tablets to all-in-one PCs. The sudden licensing imposition caught the industry off guard, forcing it to begin emergency engagements with New Delhi about how to quickly obtain licenses at a period of heightened consumer interest with India’s Diwali shopping season and back-to-school period approaching.

But on Friday, India’s Directorate General of Foreign Trade (DGFT) issued a new order saying companies can import electronics goods such as laptops, tablets and other personal computers without a license until Oct. 31.

The new curbs, which require a license to import these devices, will be effective Nov. 1, the DGFT said in a notification.

New Delhi is simplifying the process of applying for licenses, which can be approved in as little as a day, a senior government told reporters earlier Friday.

The requirement creates additional compliance headaches for manufacturers in a market that’s still largely reliant on overseas shipments.

It’s also part of a wider state push to boost local production and create a world-class tech manufacturing industry in India. Prime Minister Narendra Modi’s government is currently seeking applications for a 170 billion-rupee ($2.1 billion) financial incentive plan to draw makers of laptops, tablets and other hardware to the world’s most populous nation as companies look to diversify supply chains beyond China.