Latest news with #PreferencetoMakeinIndia
Time of India
22-06-2025
- Business
- Time of India
Proposed dilution of local content rules may hurt Indian telecom firms, benefit MNCs: GTRI
New Delhi: Major dilutions to local content rules for the telecom sector under the Public Procurement Order could negatively impact Indian firms by giving greater access to multinational corporations (MNCs) in government contracts without manufacturing in India, according to the Global Trade Research Initiative ( GTRI ) . The GTRI in a note further said that the move will benefit major foreign MNCs active in the Indian telecom component industry. Earlier this month, on June 3, the Department of Telecommunications (DoT) initiated a public consultation to revise its Public Procurement (Preference to Make in India) (PPP-MII) Order for the telecom sector. The consultation, open to industry comments until July 3, proposes a series of technical adjustments to the existing local content (LC) framework -- changes that could have far-reaching consequences for the sector's future. "Department of Telecommunications (DoT) is moving to relax local content norms for government telecom procurement -- a shift that could favour multinational corporations (MNCs) like Cisco and Ericsson while undermining Indian manufacturers who have invested in domestic production and innovation," GTRI's note added prepared by former Indian Trade Service Officer, Ajay Srivastava said. It added that MNCs are "lobbying India's Department of Telecommunications (DoT) to ease local content (LC) requirements, as they struggle to qualify as Class-I local suppliers for government telecom tenders." India's current PPP-MII policy, which was first updated in October 2024, mandates that any firm seeking preference in government telecom tenders must meet a minimum 50 per cent local content threshold. Srivastava added in the note that in order to qualify as a "Class-I" supplier and enjoy pricing and selection advantages, firms must demonstrate that at least 50 per cent of a product's value is sourced or manufactured in India which has become a difficult task for MNCs. The PPP-MII policy applies to 36 key telecom product categories -- including routers, ethernet switches, GPON devices, media gateways, customer premises equipment (CPE), satellite terminals, telecom batteries, and optical fibre and cables. Under the current PPP-MII framework, several exclusions apply to the calculation of local content. Imported parts routed through Indian resellers, royalties, overseas technical fees, and refurbished products do not count toward Indian value addition. Design and software work performed in India is permitted, but the value generated is capped, with restrictions in place to prevent companies from inflating LC percentages purely on the basis of R&D activities while continuing to import most hardware components. Srivastava added in the note that global majors are finding it "difficult to meet these thresholds." He further added that the underlying issue is that most of the work performed in India is done on an outsourcing basis for their foreign parent companies. The parent companies retain ownership of intellectual property (IP) and earn the bulk of profits. Highlighting the impact of policy change, GTRI note said that the move will put Indian telecom firms -- who have made long-term investments in Indian-based manufacturing, R&D, and IP development -- at a severe disadvantage. "Such Indian firms would face the prospect of losing market share to foreign MNCs whose products remain largely imported and foreign-owned," the GTRI note added. It further points out that dilution of standards would discourage Indian firms from investing in genuine IP creation, as Class-I status could now be achieved simply through superficial assembly or software wrapping of imported goods. "India's telecom sector would remain reliant on foreign technologies, with little strategic control," the GTRI note added.
India Gazette
22-06-2025
- Business
- India Gazette
Proposed dilution of local content rules may hurt Indian telecom firms, benefit MNCs: GTRI
New Delhi [India], June 22 (ANI): Major dilutions to local content rules for the telecom sector under the Public Procurement Order could negatively impact Indian firms by giving greater access to multinational corporations (MNCs) in government contracts without manufacturing in India, according to the Global Trade Research Initiative (GTRI) . The GTRI in a note further said that the move will benefit major foreign MNCs active in the Indian telecom component industry. Earlier this month, on June 3, the Department of Telecommunications (DoT) initiated a public consultation to revise its Public Procurement (Preference to Make in India) (PPP-MII) Order for the telecom sector. The consultation, open to industry comments until July 3, proposes a series of technical adjustments to the existing local content (LC) framework -- changes that could have far-reaching consequences for the sector's future. 'Department of Telecommunications (DoT) is moving to relax local content norms for government telecom procurement -- a shift that could favour multinational corporations (MNCs) like Cisco and Ericsson while undermining Indian manufacturers who have invested in domestic production and innovation,' GTRI's note added prepared by former Indian Trade Service Officer, Ajay Srivastava said. It added that MNCs are 'lobbying India's Department of Telecommunications (DoT) to ease local content (LC) requirements, as they struggle to qualify as Class-I local suppliers for government telecom tenders.' India's current PPP-MII policy, which was first updated in October 2024, mandates that any firm seeking preference in government telecom tenders must meet a minimum 50 per cent local content threshold. Srivastava added in the note that in order to qualify as a 'Class-I' supplier and enjoy pricing and selection advantages, firms must demonstrate that at least 50 per cent of a product's value is sourced or manufactured in India which has become a difficult task for MNCs. The PPP-MII policy applies to 36 key telecom product categories -- including routers, ethernet switches, GPON devices, media gateways, customer premises equipment (CPE), satellite terminals, telecom batteries, and optical fibre and cables. Under the current PPP-MII framework, several exclusions apply to the calculation of local content. Imported parts routed through Indian resellers, royalties, overseas technical fees, and refurbished products do not count toward Indian value addition. Design and software work performed in India is permitted, but the value generated is capped, with restrictions in place to prevent companies from inflating LC percentages purely on the basis of R&D activities while continuing to import most hardware components. Srivastava added in the note that global majors are finding it 'difficult to meet these thresholds.' He further added that the underlying issue is that most of the work performed in India is done on an outsourcing basis for their foreign parent companies. The parent companies retain ownership of intellectual property (IP) and earn the bulk of profits. Highlighting the impact of policy change, GTRI note said that the move will put Indian telecom firms -- who have made long-term investments in Indian-based manufacturing, R&D, and IP development -- at a severe disadvantage. 'Such Indian firms would face the prospect of losing market share to foreign MNCs whose products remain largely imported and foreign-owned,' the GTRI note added. It further points out that dilution of standards would discourage Indian firms from investing in genuine IP creation, as Class-I status could now be achieved simply through superficial assembly or software wrapping of imported goods. 'India's telecom sector would remain reliant on foreign technologies, with little strategic control,' the GTRI note added. (ANI)
Time of India
22-06-2025
- Business
- Time of India
Telecom policy shift may hit Indian firms: GTRI flags risk from easing of local content rules, warns of MNC dominance
Major relaxations proposed in local content rules for the telecom sector under the Public Procurement Order could undermine Indian manufacturers and favour multinational corporations (MNCs), the Global Trade Research Initiative (GTRI) said in a new report. The Department of Telecommunications (DoT) has initiated a public consultation process, open till July 3, to revise the Public Procurement (Preference to Make in India) (PPP-MII) Order for the telecom sector. The consultation proposes technical amendments to the existing local content (LC) framework that could significantly reshape participation in government telecom procurement. 'Department of Telecommunications (DoT) is moving to relax local content norms for government telecom procurement – a shift that could favour multinational corporations (MNCs) like Cisco and Ericsson while undermining Indian manufacturers who have invested in domestic production and innovation,' the GTRI said in a note prepared by Ajay Srivastava, a former Indian Trade Service officer, as quoted ANI. The PPP-MII policy, updated last in October 2024, mandates a minimum 50% local content threshold for firms to qualify as 'Class-I' local suppliers and gain preference in government procurement. GTRI noted that foreign telecom MNCs are lobbying DoT to dilute these norms as they are struggling to meet the existing criteria for Class-I suppliers. To be eligible, firms must demonstrate that at least 50% of a product's value is sourced or manufactured in India. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cuối cùng, chơi miễn phí game chiến thuật hay nhất 2025! Sea of Conquest Phát ngay Undo The policy applies to 36 key telecom product categories including routers, ethernet switches, GPON devices, media gateways, CPE, telecom batteries, optical fibre and cables. The policy excludes imported parts routed through Indian resellers, royalties, overseas technical fees, and refurbished products from the local content tally. Although design and software work performed in India is allowed, the value is capped to prevent firms from inflating their LC percentage through back-end R&D while continuing to import most hardware. 'Global majors are finding it difficult to meet these thresholds,' the note said, adding, 'Most of the work performed in India is done on an outsourcing basis for their foreign parent companies. The parent companies retain ownership of intellectual property (IP) and earn the bulk of profits.' GTRI cautioned that easing the LC rules could discourage Indian firms that have made long-term investments in domestic R&D, IP, and manufacturing. 'Such Indian firms would face the prospect of losing market share to foreign MNCs whose products remain largely imported and foreign-owned,' the note said. The think tank also warned that lowering LC standards could promote superficial assembly or software wrapping of imported products just to claim Class-I supplier status, rather than genuine localisation. 'India's telecom sector would remain reliant on foreign technologies, with little strategic control,' the GTRI note added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
15-06-2025
- Business
- Time of India
As Centre mulls easing norms for local telecom gear makers, GX Group flags import surge risk
New Delhi: Relaxation in value-addition norms for domestically-manufactured telecom equipment without proper guardrails may enhance risk of imports from non-trusted sources, a top official of GX Group has said. The Department of Telecom (DoT) has started a review of local value-addition norms in telecom equipment following reports that manufacturers are facing a challenge in achieving 50-60% local content in electronic and telecom products due to limited component ecosystem in the country. The move comes at a time when the government has rolled out a Rs 23,000-crore electronics component manufacturing scheme to enhance local value addition in domestically manufactured electronic products. "The consideration of a review to local content norms is a welcome move, however, relaxations need to come with caution on specific components. "Reducing value addition without utmost caution can enhance risk of increase in imports from non-trusted nations," GX Group CEO Paritosh Prajapati told PTI. GX Group is a beneficiary under the telecom sector's production linked incentive (PLI) scheme. The company has its manufacturing facility in Manesar and a research and development centre in Chennai. "The security-sensitive telecom equipment segment is already being infested from imported products, which is mitigating growth of indigenous production under telecom PLI scheme ," Prajapati said. The DoT on June 3 invited comments on the review of the Public Procurement (Preference to Make in India ) from industry bodies -VoICE, TEMA, ICEA, COAI and MAIT, original equipment makers --Tejas, VVDN, HFCL, Nokia, Ericsson and CISCO. It has also invited comments from electronics manufacturing services companies Dixon, Syrma, Neolync and Jabil as well as public sector firms like BSNL and TCIL. The DoT has given 30 days for stakeholders to submit their comments. Prajapati said that GX Group and other industry stakeholders have been completely focused on indigenisation mandates and have built a robust local manufacturing ecosystem along with local R&D and IP rights in the past few years. He said that given the Indian component space is still growing somewhat, relaxations of the norms may bring in some relief to the industry for specific components only to ensure that Indian players become more competitive. "Foreign companies coming in to cater to the diverse Indian market should also invest in R&D within the country and make efforts to maximise local production of required components and sub-components," Prajapati said. He said that there are instances wherein global players expand into the market but rely on assembling of products rather than creating products and adding value, in a way not investing in the local economy but only ready to cater to the market demand and enhance revenues. "Relaxation in value addition norms should be accompanied with conditions like technology transfer, timeline for capacity development in India, phase-wise manufacturing programme, etc," Prajapati said.
&w=3840&q=100)
Business Standard
12-05-2025
- Business
- Business Standard
DPIIT proposes hiring agency to vet govt tenders for norms compliance
A penalty up to 10 per cent of the contract value can be imposed in case the contractor/ supplier does not meet the stipulated local content requirement Press Trust of India New Delhi The Department for Promotion of Industry and Internal Trade (DPIIT) has proposed to appoint a consulting agency to scrutinise tenders of central government procuring entities for compliance with public procurement norms. The department has floated a request-for-proposal (RFP) in this regard. The Government of India has issued Public Procurement (Preference to Make in India) Order, 2017. It has been issued to promote locally manufactured items in public procurement thereby increasing domestic production of goods and services. The policy aims at incentivizing procurement linked through local content requirements, thereby encouraging domestic manufacturer's participation in public procurement activities over entities merely importing to trade or assemble items. A penalty up to 10 per cent of the contract value can be imposed in case the contractor/ supplier does not meet the stipulated local content requirement. As per the order restrictive and discriminatory clauses against domestic suppliers cannot be included in procurement by Central Government agencies. "DPIIT intends to onboard an agency, for a period of one scrutinising tenders of Central Government procuring agencies for its compliance with ...(this) order," it said. Earlier, the department had identified 259 tenders as non-compliant with the public procurement norms in 2024. The decision to appoint an agency comes in the backdrop of DPIIT's observation that procuring entities are not stipulating the applicability of the Order in tenders, which is the most significant factor contributing to non-compliance. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
