The Ministry of Home Affairs has asked the Department of Telecommunications (DoT) to look at the feasibility of manufacturing SIM cards domestically as it believes importing them poses a national security threat. Initially the Ministry has asked DoT to give its views on allowing only licenced telecom operators to import SIM card after mandatory security clearances, if local manufacturing is not feasible.

Currently, SIM cards are imported under the open general licence (OGL) from China and other low-cost markets across Asia. SIM cards are personalised when a manufacturer gives a mobile phone company the secret keys and encryption data, which makes each card unique. The ministry has further stated that since SIM cards are imported, this encryption information and keys continue to remain with the overseas SIM maker. This can be used in a wrong manner resulting in large scale cloning of SIM cards too.