Telecom gear cos 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 such as Nokia and Ericsson.

- Jatin Grover

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

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.