Government to Start Electronics Repair Pilot Project; Will Test Easing Rules to Lure Manufacturers

India still lacks an industry for repair outsourcing which is estimated to be worth $100 billion (roughly Rs. 8.2 lakh crore) globally.

Advertisement
By Reuters | Updated: 30 May 2023 16:24 IST
Highlights
  • Electronics repair sector is currently dominated by China and Malaysia
  • Lenovo and Cisco will participate in the pilot phase
  • Move could draw tech majors such as Flex to expand in India

The Indian government plans on relaxing cumbersome import-export rules

Photo Credit: Reuters

India will start a pilot project this week to establish itself as an electronics repair hub by relaxing cumbersome import-export rules, a move that could draw tech majors such as Flex to expand such operations in the country.

Prime Minister Narendra Modi has promoted electronics manufacturing in India and attracted the likes of Apple and Xiaomi, but the country still lacks an industry for repair outsourcing which is estimated to be worth $100 billion (roughly Rs. 8.2 lakh crore) globally and currently dominated by China and Malaysia.

Following a push by an industry group for IT and electronics manufacturers, MAIT, the Indian government will test changes to lower the time required for necessary approvals for imports and exports to a day from as much as 10 days.

Advertisement

MAIT Director General Ali Akhtar Jafri said the government has agreed to ease the approval process for timely clearances with the tax authorities so that devices can easily enter India for repairs and then be shipped back quickly.

Advertisement

Bottlenecks in India also include an e-waste mandate that bans companies from locally disposing non-repairable products - adding to their logistics costs as they have to be sent back. The government will now allow recycling of 5 percent of imported goods domestically on a trial basis.

In the pilot phase, which will see participation from companies including Lenovo and Cisco, India will also permit re-export of the imported electronics goods to countries different from the original one - currently it is banned under foreign trade rules.

Advertisement

Flex, Lenovo and Cisco did not immediately respond to Reuters' requests for comment. India's IT ministry also did not immediately respond.

"Repair outsourcing will incentivise electronic manufacturers to further expand their production capabilities in India. This is a critical step towards ensuring resilience to supply chain shocks," said Jafri, who estimated the repair industry in India to be worth $20 billion (roughly Rs. 1.6 lakh crore) in five years.

Advertisement

High repair costs in regions such as Europe and the United States are compelling companies to send goods overseas, Jafri said. He added that cheaper labour costs in India give it a total cost advantage of 57 percent over China and 26 percent over Malaysia - some of the biggest hubs for repairs at present.

© Thomson Reuters 2023


Samsung Galaxy A34 5G was recently launched by the company in India alongside the more expensive Galaxy A54 5G smartphone. How does this phone fare against the Nothing Phone 1 and the iQoo Neo 7? We discuss this and more on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
 

For details of the latest launches and news from Samsung, Xiaomi, Realme, OnePlus, Oppo and other companies at the Mobile World Congress in Barcelona, visit our MWC 2025 hub.

Further reading: Electronics Repair, India, Lenovo, Cisco
Advertisement
Popular Mobile Brands
  1. MacBook Pro (2026) With M5 Pro, M5 Max Chips Launched in India: See Price
  2. Epson EpiqVision Mini EF-22N Review: A Premium Portable Laser Projector
  3. Samsung 'Holi Hai' Sale Brings Offers on Bespoke AI Appliances
  4. Apple Introduces M5 Pro, M5 Max Chips With Fusion Architecture, Super Cores
  1. Mike & Nick & Nick & Alice OTT Release Date: Know When and Where to Watch it Online
  2. MediaTek Showcases AI Glasses at MWC 2026; Demonstrates Emergency Satellite Alerts With Starlink
  3. Devagudi Now Streaming Online: Where to Watch Intense Drama Online?
  4. Jab Khuli Kitaab OTT Release Date: When and Where to Watch Pankaj Kapur and Dimple Kapadia Starrer Romantic Drama Online?
  5. Apple Introduces M5 Pro, M5 Max Chips With New Fusion Architecture on 2026 MacBook Pro Models
  6. Apple Studio Display, Studio Display XDR With 27-Inch 5K Displays Launched in India: Price, Features
  7. Jockey Now Available for Streaming Online: Where to Watch This Tamil Action Movie Online?
  8. NASA’s Carruthers Observatory Begins Mission to Study Earth’s Hydrogen Halo
  9. MacBook Pro (2026) Launched in India With M5 Pro, M5 Max Chips, Up to 16-Inch Display: Price, Specifications
  10. MacBook Air With M5 Chip, Up to 15.3-Inch Display Launched in India: Price, Specifications
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.