‘Tech dumping now a rising concern for India’, says Deputy National Security Advisor
BENGALURU: Pavan Kapoor, Deputy National Security Advisor, on Friday said while technology-driven initiatives in various fields are crucial, the rising concern
News Tech dumping now a rising concern for India, says Deputy National Security Advisor
- Thread starter jsmithe
- Start date
Darth Vader
Galvanizer
The article is fundamentally flawed and misses the point entirely. The reason older systems are imported into India is simple: there is demand. As someone deeply entrenched in the market, I see this firsthand. Vendors across the country are still selling second, third, and fourth-generation computers because buyers want them. Just yesterday, I witnessed one of my vendors placing an order for 20 units of i5 3rd-gen and i7 2nd-gen systems—these are headed to Sri Lanka. This is a common occurrence because such systems fulfill a demand for affordable computing, both locally and internationally.
The economics behind these imports are straightforward: these systems are purchased by weight, not configuration. Even if an entire container is imported and 50% of it is deemed unusable, the rest makes the import worthwhile. The unusable components don’t go to waste either—they are sent to recycling facilities. I’ve personally seen these plants, where parts are dismantled, melted, and broken down for reuse. This is not “dumping” as the article suggests but rather a cycle of repurposing and recycling that ensures minimal waste.
If there is improper disposal or mismanagement, the onus falls squarely on the government to regulate and enforce proper recycling standards, not to blanket-ban imports under the guise of a “political agenda.”
For instance, large corporations like Dell, HP, and Lenovo can afford to pay exorbitant import duties (up to 30%) and GST, or bribe officials to speed up the process. But what about small businesses and individuals trying to make an honest living? We are told to jump through endless hoops—apply for DGFT licenses, pay hefty certification fees, or grease the palms of officials to bypass the red tape. For many of us, this isn’t just frustrating; it’s a systemic blockade that crushes entrepreneurship and limits access to affordable computing for the masses.
P.S. This article was re-written with the help of AI
The economics behind these imports are straightforward: these systems are purchased by weight, not configuration. Even if an entire container is imported and 50% of it is deemed unusable, the rest makes the import worthwhile. The unusable components don’t go to waste either—they are sent to recycling facilities. I’ve personally seen these plants, where parts are dismantled, melted, and broken down for reuse. This is not “dumping” as the article suggests but rather a cycle of repurposing and recycling that ensures minimal waste.
If there is improper disposal or mismanagement, the onus falls squarely on the government to regulate and enforce proper recycling standards, not to blanket-ban imports under the guise of a “political agenda.”
Take the Case of Mini PC Import Restrictions
A prime example of misguided policy is the restriction on importing mini PCs. The official justification by the Directorate General of Foreign Trade (DGFT) is to “promote domestic manufacturing.” But let’s be honest—India currently lacks the capability or capacity to manufacture even basic computer components at scale. This restriction does not help local manufacturing. Instead, it creates artificial barriers that force companies and individuals to navigate a bureaucratic maze.For instance, large corporations like Dell, HP, and Lenovo can afford to pay exorbitant import duties (up to 30%) and GST, or bribe officials to speed up the process. But what about small businesses and individuals trying to make an honest living? We are told to jump through endless hoops—apply for DGFT licenses, pay hefty certification fees, or grease the palms of officials to bypass the red tape. For many of us, this isn’t just frustrating; it’s a systemic blockade that crushes entrepreneurship and limits access to affordable computing for the masses.
Misguided Priorities
What the government needs to understand is that demand drives imports, not the other way around. The market for older technology exists because many Indians cannot afford brand-new systems. Affordable refurbished imports bridge this gap. Rather than stigmatizing these imports as “tech dumping,” the government should focus on:- Improving Recycling Infrastructure: Ensure that every imported system is recycled responsibly, with clear standards and proper enforcement.
- Reducing Bureaucratic Barriers: Simplify the import process for individuals and small businesses, instead of creating opportunities for corruption.
- Encouraging Real Domestic Manufacturing: Invest in infrastructure and incentives to develop local manufacturing capabilities, instead of making hollow claims while charging high import duties.
P.S. This article was re-written with the help of AI
