In this file photo dated July 31, 2020, a pedestrian walks past an advertisement of Chinese mobile phone maker VIVO, painted on a shuttered shop of a market in Mumbai. (PHOTO / AFP)

Days after India imposed import restrictions on laptops, tablets, and some types of computers with immediate effect, China seeks broader cooperation of BRICS members including India, while analysts seem New Delhi’s move as a protectionist policy that may hurt itself.

On Aug 3, India’s Federal Ministry of Commerce and Industry imposed import restrictions on laptops, tablets, servers, and personal computers with immediate effect. The following day it was announced that restrictions would not take effect until Nov 1, when no one will be allowed to import devices without a license.

India has for years promoted local assembly manufacturing with imported components and the Indian government has taken difficult measures against Chinese smartphone manufacturers, bringing trouble to mobile phone brands such as Xiaomi, Vivo and OPPO

The Directorate General of Foreign Trade, a wing of the Federal Ministry of Commerce and Industry stated, "Import consignments can be cleared till Oct 31, 2023, without a license for restricted imports." 

READ MORE: India curbs on Chinese firms fuel concern

The curbs are seen as aimed at boosting the country’s “Make in India” initiative and bringing prices down. 

It is the “government's objective to ensure trusted hardware and systems, reduce import dependence and increase domestic manufacturing of this category of products," India’s Deputy Minister for Information Technology Rajeev Chandrasekhar wrote on the X social media site, formerly known as Twitter, on Aug 4.

While the restrictions are not country-specific, most laptops and personal computers sold in India are manufactured or assembled in China.

China’s Commerce Minister Wang Wentao called for BRICS members to strengthen cooperation and uphold multilateralism at a meeting of BRICS trade and economy ministers on Aug 7.

"China is ready to take actionable steps to promote cooperation within BRICS in the areas of trade and economics," Wang said at the virtual meeting, which was also attended by India’s Minister of Commerce and Industry Piyush Goyal.

Saikat Sinha Roy, a noted economist from Jadavpur University in West Bengal, said in the context of India restricting computer imports Wang’s comment is significant and it is important for both countries to cooperate given their trade complementarity.

Roy said import restrictions will see prices rise and the quality of products might be adversely affected.

While the move may boost domestic production, the market requires competition. Import restrictions mean no R&D, no technological development, and the efficiency and productivity of these products will also be jeopardized, Roy said.

Import restrictions might be detrimental to the Indian economy, Roy noted, adding that protecting the domestic market will leave foreign investors reluctant to invest in India. 

Wang’s comments are welcome and in tune with India’s own efforts, said Swaran Singh, a professor of international relations at the Jawaharlal Nehru University in New Delhi.  While each nation has its priorities, strengths, and challenges, BRICS members can surely explore new areas for their expanded cooperation given the shared spirit of expanding mutual trade and commerce, Singh added.

Last month, Chandrasekhar said India remains open to Chinese investment despite border tensions between the two countries. "We are open to doing business with any company anywhere as long as they are investing and conducting their business lawfully and are in compliance with the Indian laws,” he told the Financial Times.

Lawrence Loh, director of the National University of Singapore's Centre for Governance and Sustainability, said countries must uphold the interests of their people in adequate consumer choices and good prices.

“They should respect free trade and uphold free markets – protectionist measures will not help in economic development, especially in the challenging global economic setting beset by high inflation,” he told China Daily.

The move behind the import restrictions is not to prohibit imports but to regulate it to ensure that items which enter into the country are compliant with India’s security concerns and don’t expose consumers to any risks

He added that even if there are short-term benefits to any form of import restrictions, the long-term consequence will be the loss of global competitiveness due to economic sub-optimization.

“Geopolitical tensions should not get in the way of trade and economic growth”, said Loh.

The new restrictions will directly affect China as the country accounts for a substantial portion of the $7 billion of annual imports of such computer items, experts said.

The move behind the import restrictions is not to prohibit imports but to regulate it to ensure that items which enter into the country are compliant with India’s security concerns and don’t expose consumers to any risks, a senior government official with the Ministry of Commerce and Industry told China Daily on condition of anonymity.

But Wang Dehua, an expert on India at the Shanghai Municipal Centre for International Studies and former director of the Centre for South Asia Studies at the Shanghai Academy of Social Sciences,  said, “in my personal view, this move is seen as a comprehensive snatch of China's electronics industry.”

He doubted the new measure will make India’s push for "Make in India" successful.  Major laptop brands in the Indian market have large shares of products manufactured in the Chinese mainland currently.

India has for years promoted local assembly manufacturing with imported components and the Indian government has taken difficult measures against Chinese smartphone manufacturers, bringing trouble to mobile phone brands such as Xiaomi, Vivo and OPPO.

READ MORE: India's curbs on Chinese phone firms set to ruin its attractiveness

Online analysts already warn that China's PC industry chain related manufacturers be cautious about investing in India, to learn from lessons of Chinese smartphone manufacturers in India investment. 

India’s trade deficit with China touched $71.56 billion in the first 10 months of 2022-23, just $1.7 billion short of the record high of $73.31 billion in 2021-22, according to data shared by India’s Minister of Commerce and Industry Anupriya Patel in the Indian Parliament in March.

Most goods imported from China are capital goods, intermediate goods, and raw materials used for meeting the demand of fast-expanding sectors like electronics, telecom, and power, Patel said.

Xinhua contributed to the report. Aparajit Chakraborty is a freelance journalist.