In a potentially significant regulatory shift, the Indian Government is exploring the introduction of a global certification requirement for IT hardware companies. This move is aimed at controlling the user-generated content on their platforms.

What Happened: As reported by The Economic Times, the Centre seeks to alter a regulatory provision that currently grants internet firms, including social media platforms, immunity from prosecution for user-generated content. This immunity could soon become “an exception rather than the norm.”

The proposed change comes amidst significant wealth creation in the top tiers of the Indian corporate sector, even as broader economic challenges continue to impact the workforce.

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Why It Matters: In August 2023, India imposed restrictions on the import of laptops, tablets, and personal computers, promoting local manufacturing and reducing dependency on imports. Electronics imports, including laptops, tablets, and personal computers, accounted for 7% to 10% of India's total merchandise imports.

In the following month, ITI Limited, under the Ministry of Communication, launched its proprietary laptop and micro PC named ‘SMAASH'. ITI’s innovative products, developed in partnership with Intel Corporation, are designed to minimize carbon footprints, reduce e-waste, and consume less power than traditional PCs.

This regulatory shift could have far-reaching implications for IT hardware companies’ operations and might necessitate obtaining global certification. This comes at a time when the upcoming state and general elections could potentially stimulate a strong recovery in rural demand, positively impacting consumer goods companies and automakers.

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