The Times of India | Laptop licence: Why are failed policies being revived again?

In the 1970s and 1980s, a large country undertook a “market reserve” policy. The idea was to restrict imports, protect the infant computer industry, and give it a chance to become competitive. But after nearly two decades of restrictions, the country was far from achieving its desired goal of becoming a major international player in computers. Smugglers prospered as they found ways to get around the trade barriers. The local players that benefited from a closed market were so inefficient that many vanished as soon as the winds of globalisation swept in the 1990s. That country is not India, but Brazil. Read the full article here.

Hindustan Times | An echo of licence raj in laptop import curbs

India’s abrupt decision to restrict the import of laptops and personal computers, though with a three-month lag, is a throwback to the 1970s, when such policies were commonplace. Presumably, the aim is to give a fillip to domestic manufacturing and is probably targeted at China, which accounts for 75% of the total $5.33 billion worth of laptops and personal computers imported by India in 2022-23. However, the government maintains that it carried out the move for the digital security of its citizens. The reason is obvious — national security is the one accepted condition in multilateral trade treaties for imposing import restrictions, whereas protectionism is frowned upon. Read the full article here.

Why India, EU Should Prioritise Removing Existing Bottlenecks in Trade and Technology Pact

As technology remains a critical factor in advancing countries’ economies, there is also a quest for improving the accessibility of these critical technologies. The recently announced Europe-India Trade and Technology Council (TTC) Agreement is an attempt to have easier access of key technologies to both actors. The agreement seeks to improve the cross-border flow of technology goods and services between the two entities. An area of focus would be the existing and potential trade barriers that might impact the agreement. These barriers need to be addressed if the agreement can yield tangible results for the growth of the technology sector in India and Europe.

Separating economic and border issues

As we exit the lockdown and resume economic activity, we will have to observe certain protocols. Like social distancing. Or using hand sanitisers in office, public places, or even at home. These sanitisers are alcohol-based and usually come in dispenser pumps. The pump minimises human contact, unlike a tube or bottle. It is made of plastic, has 16 components, and costs less than Rs 20 if produced at scale. Here’s the rub: As reported by an online news outlet, we have not been able to find domestic manufacturers who can produce dispensers at a large scale, at this cost. We are facing a health crisis, and urgently need large quantities of dispenser pumps. There’s no alternative but to import from China.Take pharmaceuticals. We are the world’s leaders in bulk drug formulations, used by leading medicine makers of the world. But these formulations need crucial active pharmaceutical ingredients (APIs) as inputs. Without APIs, our pharma industry, both domestic and export, will be crippled. And 65 per cent of APIs are imported from China, worth $3.5 billion (i.e. about Rs 25,000 crore). When imports were halted in April and May due to the lockdown and stoppage of the sea and air cargo, there was near panic in the Indian pharma industry. This could threaten even our internal supply situation for medicines. And there is no realistic option of switching to any other supplier, at this cost or scale. Unless we risk rising medical costs.Read More