India will relax its import-export rules to launch a pilot this week to establish itself as an electronics repair center, Indian Express reported.
The government wants to use this to attract large electronics manufacturers to the country.
India has managed to attract giants like Apple and Xiaomi, but it still lacks a repair outsourcing industry valued at $100 billion globally, currently dominated by China and Malaysia.
According to a report by Indian Express, the Indian government will test changes to reduce the time required for import and export permits to one day from up to 10 days.
The Manufacturers’ Association For Information Technology (MAIT), an industry group for IT and electronics manufacturers, pushed for this pilot.
Also among the biggest challenges in India is an e-waste mandate that bans companies from disposing of non-repairable products locally – increasing their logistics costs as they have to be sent back.
The government will now allow 5 percent of imported goods to be recycled domestically on a trial basis.
In the pilot phase, in which Lenovo and Cisco, among others, will take part, India will also allow the re-export of imported electronic goods to countries other than the original one – this is currently prohibited under foreign trade rules.