This week, India will launch a pilot project to establish itself as an electronics repair hub by relaxing cumbersome import-export rules, a move that could entice tech companies like Flex to expand such operations in the country.

Prime Minister Narendra Modi has promoted electronics manufacturing in India, attracting companies such as Apple and Xiaomi, but the country still lacks a repair outsourcing industry, which is valued at $100 billion globally and is currently dominated by China and Malaysia.

Following a push from an industry group for IT and electronics manufacturers, MAIT, the Indian government will test changes to reduce the time required for necessary import and export approvals to a day from up to ten days.

According to MAIT Director General Ali Akhtar Jafri, the government has agreed to simplify the approval process for timely clearances with tax authorities, allowing devices to enter India for repairs and then be shipped back quickly.

In India, bottlenecks include an e-waste mandate that prohibits companies from disposing of non-repairable products locally, increasing their logistics costs because they must be returned. On a trial basis, the government will now allow domestic recycling of 5% of imported goods.

In the pilot phase, which will include companies such as Lenovo and Cisco, India will also allow the re-export of imported electronics goods to countries other than the original one, which is currently prohibited under foreign trade rules.