According to GX Group, relaxing value-addition requirements for domestically-manufactured telecom equipment without appropriate safeguards could increase the risk of imports from non-trusted sources. The warning comes as the Department of Telecommunications (DoT) begins reviewing existing local value-addition norms amid industry concerns over difficulties in meeting the 50 to 60 per cent local content threshold due to India’s limited component ecosystem.
This review coincides with the government’s push to enhance domestic electronics production, including the launch of a scheme to boost electronics component manufacturing and deepen local value addition.
Earlier, the DoT invited feedback from key stakeholders on potential changes to the Public Procurement (Preference to Make in India) policy. Inputs have been sought from industry bodies, original equipment manufacturers, electronics manufacturing service firms and public sector entities.
GX Group and other industry players have been actively investing in building a strong domestic manufacturing ecosystem with a focus on local research and development (R&D) and IP ownership. They acknowledge that the Indian component manufacturing landscape is still developing, and limited, targeted relaxations could provide temporary relief for specific components, helping Indian companies become more competitive globally.
However, GX Group also cautioned against scenarios where international firms enter the Indian market but focus only on assembling products without genuine local value addition. Such practices, they warn, fail to contribute meaningfully to the local economy and primarily serve to tap into demand and increase revenues, undermining the spirit of indigenisation.
