Notebook imports into India jumped to ₹22.36 crore in the first half of 2026, marking a fivefold increase. Domestic manufacturers are now demanding a 9-10% safeguard duty. They argue that the current 'nil' GST structure and duty-free imports are creating an uneven playing field, putting significant pressure on local production costs.
Domestic notebook manufacturers in India are facing growing financial pressure after data showed a massive jump in imports during the first half of 2026. Between January and June, notebook imports climbed to ₹22.36 crore, a fivefold increase compared to the ₹3.65 crore recorded during the same period last year. This sharp rise has sparked concerns within the industry regarding the competitiveness of locally made products against cheaper foreign alternatives.
Tax Disadvantages for Local Producers
The core of the conflict lies in the tax structure. Under the current tax rules, notebooks fall under a 'nil' Goods and Services Tax (GST) rate. While this may seem beneficial for consumers, it creates a specific challenge for manufacturers. Because there is no GST on the final product, companies are unable to claim input tax credit (ITC) for the taxes they pay on raw materials such as paper, binding supplies, and ink. This means that the taxes paid on production inputs remain embedded in the final cost of the product, effectively making local notebooks more expensive to produce.
The Impact of Trade Agreements
Domestic players also argue that they are competing with imported goods that enjoy significant tax benefits. Many imported notebooks, particularly those arriving from ASEAN countries, enter India with zero Basic Customs Duty (BCD) and no Integrated Goods and Services Tax (IGST) because of established free trade agreements. This gives overseas suppliers a substantial price advantage over local manufacturers who must bear the burden of embedded production taxes.
Industry Demand for Safeguard Duties
In response to these conditions, the All India Notebook Manufacturers Association (AINMA) has officially requested government intervention. The industry body is seeking an immediate safeguard or compensatory import duty of 9% to 10% on exercise books. Manufacturers believe this measure would help neutralize the cost disadvantage caused by the inability to claim input tax credits and level the playing field against foreign suppliers.
The industry maintains that it is not asking for protectionism but rather a fair environment where local producers are not penalized by the current tax design. The situation remains a key concern for the stationery and paper product sector, as continued margin pressure could impact the long-term viability of domestic manufacturing units. The next major update for stakeholders will be the government's decision on whether to implement the requested safeguard duties or adjust the tax framework to ease the burden on local manufacturers.