Indian telecom equipment manufacturers have reportedly raised concerns about policy advantages being extended to foreign companies such as Ericsson and Cisco, which are scaling up their local operations to capitalise on India’s expanding telecom infrastructure.
The matter has triggered a debate within the Department of Telecommunications (DoT), which is attempting to strike a balance between encouraging global manufacturers and supporting domestic industry growth.
A major issue highlighted by domestic firms is that foreign companies assembling equipment in India may qualify as Class-II suppliers under the 2017 Make in India public procurement policy. This classification enables them to bid for government contracts despite only partial local production, while Indian firms continue to seek a level playing field.
Foreign telecom companies are also advocating for duty exemptions and relaxed import regulations for components that are either unavailable or insufficiently produced in India, most of which are currently sourced from China.
Indian manufacturers argue that such concessions dilute the government’s intent to promote indigenous production, especially given the ongoing restrictions on Chinese equipment due to national security concerns.
In June, the DoT initiated a revision of local content regulations under the 2017 policy to address these challenges. A public notice issued by the department acknowledged the country’s underdeveloped component ecosystem, which makes it difficult to meet the 50-60 per cent local content requirement in telecom products, and called for feedback from industry stakeholders.
