Telecom gear firms spy foreign threat

A government notice last week hinting at a possible reversal in India's local sourcing policy for telecom equipment has left local manufacturers fretting about losing ground to global companies like Nokia and Ericsson.

- Jatin Grover

NEW DELHI:

Under current rules, telecom equipment manufacturers must source 50-60% of their total bill of materials locally to be in the preferred bidder category. However, in a notice dated 3 June, the Department of Telecommunications said India's limited components ecosystem posed challenges in achieving 50-60% local sourcing for electronic and telecom products. "Recognizing this constraint, the conditions for local content qualification also requires a review," DoT said.

Domestic telecom equipment makers warned that any relaxation would undermine India's self-reliance agenda and give an unfair advantage to multinational firms.