Notebook Imports Rise Fivefold in First Half, Prompting Call for Safeguard Duty

The domestic notebook manufacturing industry is facing severe market pressure following a fivefold surge in notebook imports during the first six months of the calendar year. According to data from the Ministry of Commerce, the value of notebook imports rose to ₹22.36 crore during the January-June 2026 period, compared to ₹3.65 crore in the corresponding period.

Domestic industry representatives attribute the sharp rise in cheaper imports to structural cost pressures faced by local producers. The transition to a nil GST rate on notebooks under GST 2.0 has inadvertently created a cost burden for domestic manufacturers. Because producers can no longer claim input tax credit under Section 17(2) of the CGST Act, 2017, taxes paid on raw materials and other inputs are now embedded directly into the final cost of production.

Abhinav Jain, Member of the All India Notebook Manufacturers Association (AINMA), commented on the disparity. He stated that Indian notebook manufacturers are seeking a fair and level playing field rather than protection from competition. Jain noted that the current tax structure places an uneven burden on domestic producers who must absorb embedded input taxes, whereas imported notebooks enter the market with a substantially lower tax burden.

The competitive disadvantage is further amplified by trade agreements. Imported notebooks, particularly those arriving from ASEAN countries, benefit from different tax treatments. Under the ASEAN Free Trade Agreement (AFTA), eligible notebook imports attract zero Basic Customs Duty (BCD). Combined with the nil GST rate, overseas suppliers face no Integrated Goods and Services Tax (IGST) on imports. Industry participants point out that this framework grants overseas suppliers a significantly lower landed cost and a distinct price advantage over Indian manufacturers.

To counteract these challenges, the domestic industry has urged the government to implement urgent policy interventions. Specifically, industry stakeholders have requested a safeguard or compensatory import duty ranging from 9 percent to 10 percent on notebook imports classified under 'exercise books'. According to domestic makers, this measure would help neutralize the input tax disadvantage and restore a more competitive environment for local producers.

"The surge in notebook imports highlights a critical policy challenge regarding domestic manufacturing competitiveness and tax alignment. When structural changes like input tax credit limitations clash with free trade agreements, local producers face unintended cost disadvantages that impact their pricing power. Addressing these friction points through balanced trade and tax policies is essential to maintaining a level playing field for domestic businesses." — Dr. Shishir Gupta, Founder & CEO, StartupLanes