IT Hardware Manufacturers Push For Faster Certification To Boost Domestic Production

New Delhi, Sep 13 (KNN) In a bid to accelerate domestic production under the government's Production-Linked Incentive (PLI) scheme, IT hardware manufacturers are urging for a significant reduction in the certification process for locally-made laptops and notebooks.

Industry leaders have voiced concerns to the Ministry of Electronics and Information Technology (MeitY) regarding the extended timelines for obtaining Bureau of Indian Standards (BIS) certification, which currently spans five to six months, reported ET.

The prolonged certification period is attributed to mandatory separate tests for battery packs installed on laptops, following viability assessments with local contract manufacturers.

An anonymous senior executive from a prominent IT hardware brand explained, "The current process, requiring testing certificates for individual components and the entire laptop, takes approximately 5-6 months.”

“This is particularly challenging given that these products typically have a market lifespan of 8-10 months," he added.

Manufacturers assert that this extended testing protocol is impeding their plans to expand local production, especially for models intended to debut in India.

The issue is particularly acute for Make-in-India models, as companies must secure all necessary BIS certifications before launch, followed by market testing and feedback collection.

While the Manufacturers Association for Information Technology (MAIT) maintains that the BIS certification process for laptops generally takes around 40 days, they acknowledge that timelines can be significantly longer in cases requiring factory inspections.

In a recent meeting with MeitY, IT hardware brands proposed an expedited testing program for laptops covered under the PLI scheme.

They emphasised that the current lengthy testing period is hindering production expansion plans, with only a few brands having commenced local production under the scheme so far.

The government, reportedly unaware of the extensive pre-launch testing requirements, has pledged to address the issue promptly. Industry executives express optimism about a swift resolution.

The protracted certification process has led some brands to favour importing products, which is facilitated by the zero-duty regime under the Information Technology Agreement (ITA-1). Imported laptops typically arrive pre-certified, streamlining their market entry.

In October 2023, the government implemented an import management system to monitor inbound shipments of laptops and other IT hardware.

Recent reports indicate that companies with import authorisations have brought in IT hardware products worth over USD 4 billion in the current fiscal year, compared to total imports of USD 8.4 billion in FY24.

As the industry awaits potential reforms to the certification process, the balance between promoting domestic manufacturing and ensuring product quality and safety remains a key focus for both manufacturers and regulators.

(KNN Bureau)