India’s laptop import restrictions smell like bureaucratic desperation

India’s sudden decision to restrict the import of computers and tablets looks more like bureaucratic desperation rather than a well-considered industrial policy. The move a day later to push back implementation until November only adds to the sense that New Delhi is making things up as it goes along.

The government’s Aug. 3 announcement means businesses will need an import license to bring items like laptops into the country — a sign that earlier incentives designed to increase domestic production had failed to gain traction. Specifically, a 169 billion rupee ($2 billion) plan to hand cash back to makers of computer equipment doesn’t seem to be garnering the levels of interest received for an earlier policy aimed at smartphone makers.