Domestic Firms Oppose DoT Move to Relax Local Content Rules in Telecom Procurement
R. Suryamurthy
A recent proposal by the Department of Telecommunications (DoT) to relax local content (LC) requirements under India’s telecom procurement policy has sparked strong opposition from domestic manufacturers. They argue that the move risks undermining the country’s Make in India initiative and could deepen reliance on foreign technologies.
The DoT is currently holding a public consultation—open until July 3—on proposed amendments to the Public Procurement (Preference to Make in India) (PPP-MII) Order. At the heart of the proposal is a redefinition of how local content is calculated in government telecom contracts, a shift that could expand the eligibility of multinational corporations (MNCs) in public tenders by loosening the criteria for domestic value addition.
Industry stakeholders warn that the changes—perceived as a concession to persistent lobbying from global telecom giants like Cisco, Ericsson, and Nokia—could relegate India’s telecom sector to a low-cost assembly hub, discouraging domestic innovation, R&D, and IP development.
