Native" vs. "Foreign" Technology Ban on Import of Foreign Goods

"Native" vs. "Foreign" Technology Ban on Import of Foreign Goods

Mains Exam: General Studies Paper 3

(Indian Economy)

August 07, 2023

Why In News:

  • Recently, the Central Government has banned the import of foreign laptops, tablets and computers.
  • The security reasons behind the ban on foreign computers, laptops, etc. have been given. Of these, only seven categories of computers, laptops and tablets bearing HSN code 8471 have been banned.

HSN means 'Harmonized System of Nomenclature'

  • HSN ie 'Harmonized System of Nomenclature' code is a classification system, which is used to identify products for taxation purposes.
  • This code is used to identify equipment that is designed to perform data processing functions.
  • In this way, this step has been taken for the purpose of protecting the personal data of the people. These days, the way in which the tendency of stealing personal data of people and selling them to companies of other countries has increased, keeping an eye on such systems prepared in other countries proves to be a difficult task.

Causes for banning Imports:

  • To develop indigenous technology.
  • To make serious efforts towards bridging the trade deficit.
  • Protecting people's personal data.

Its Impacts:

  • This will increase the sale of technical equipment made in India.
  • There will be an increase in the shares of some indigenous companies.
  • Development of indigenous technology will get a boost.
  • The trade deficit of the government will come down.
  • Due to lack of space in the domestic market, indigenous companies will be able to improve the quality of their products.

Analysis:

  • The ban on foreign goods is not a sudden decision taken by the government or a completely new decision. Hundreds of such foreign items have been banned earlier, including many items related to defense equipment.
  • According to reports, companies may be given more time to apply after licenses are made mandatory for importing devices like laptops, tablets etc.
  • It will also be ensured that companies are not put to any inconvenience in calling for consignments already in transit. In fact, in this era of globalization when the whole world has turned into a single market, people have got the freedom to buy quality goods of their choice from anywhere. In this way the choice of foreign goods has become a habit of the people.
  • At present, some countries like China are seen developing new methods of espionage, in which the HSN i.e. 'Harmonized System of Nomenclature' code system can prove to be dangerous. Therefore, in the new decision, the consignment of such equipment imported from Korea and China has been cut. Now only those companies can do business in these devices, which produce or assemble them in India only.
  • There is a cultural aspect of "native" and "foreign" technology that is deeply ingrained in our society. "Indigenous" technology is associated with India's heritage and tradition while "foreign" technology is technology acquired from abroad.
  • Here is a point to ponder as we have to see what is the significance of this similarity and difference between the two.
  • In favor of indigenous technology, it is said that it is a part of our culture and heritage. It gives us an opportunity to live traditionally and it promotes indigenous production. Developing indigenous technologies contributes a great deal towards the prosperity of the Indian economy. With this, India can become self-reliant and can establish dialogue of equality with other foreign countries.
  • At the same time, it is said in favor of foreign technologies that they can be considered more developed and advanced. Foreign technologies are often famous for advancement in the field of science, technology and engineering. By adopting these, India can also move fast in the direction of technological progress.
  • We need to adopt a structured approach to understand this issue. Along with promoting the merits of indigenous technologies, we should also understand the benefits of foreign technologies. Providing government support and grants to Indian scientists and engineers towards prosperity will lead to advancement.

Criticism:

  • Although some people feel that this decision will violate the world trade rules and the government is doing this because its purpose is to benefit some of its favorite companies. But governments can take such decisions for their security reasons. Then people will not be barred from importing such machines from outside, for which they will have to pay import duty.
  • In fact, one of the major objectives of the government behind banning foreign goods is that in this way its trade deficit is reduced considerably. In fact, in terms of exports, India is lagging far behind its target and imports are continuously increasing, due to which the trade deficit has reached worrying levels. In this way, by banning imports, the government can definitely bridge the trade deficit, but without increasing exports, it will remain a challenge to speed up the economy.

Conclusions:

  • On the issue of indigenous and foreign technologies, we should consider how we can understand these technologies and use them in the interest of civilized society. We need to cooperate with each other and make proper use of these technologies for a prosperous future.

                                                    --------------------------

Mains Exam Question

In the context of indigenous versus foreign technology, critically analyze the restrictions imposed by the Government of India on the import of technical goods.