The Department of Telecommunications (DoT) has initiated a comprehensive review of its Public Procurement Preference – Make in India (PPP-MII) order, originally issued on October 21, 2024. This move aims to ensure that the policy continues to support the evolving needs of India’s telecom manufacturing ecosystem.
To foster a more inclusive and practical framework, the DoT has invited comments and suggestions from all stakeholders—including telecom manufacturers, industry bodies, PLI scheme participants, and other interested parties. The consultation will focus on revising
- The list of telecom products under the policy
- Local content requirements for hardware, design, and software
- Criteria used to calculate local content percentages
Stakeholders have been asked to submit feedback within 30 days of the notice, enabling the department to capture a broad spectrum of industry perspectives.
Addressing Practical Challenges in Local Manufacturing
The review is driven by feedback from NITI Aayog, TRAI, MAIT, and companies under the PLI scheme, all of whom have raised concerns about the difficulty of meeting 50–60% local content thresholds. These challenges stem largely from India’s underdeveloped component supply chain, which limits manufacturers’ ability to source key parts domestically.
Under the current PPP-MII policy, 36 telecom products—including routers, ethernet switches, media gateways, customer premises equipment (CPE), GPON systems, optical fibre, satellite phones and terminals, and telecom-grade batteries—must have over 50% local value addition to qualify as Class-I suppliers eligible for government procurement. Suppliers with 20–50% local content fall under Class-II, which are considered only if Class-I vendors are unavailable.
5G Products Excluded for Now
Notably, 5G products are currently excluded from the mandatory local content list. However, the DoT has left room for periodic reviews, with the option to include them in the future as domestic manufacturing capabilities grow.
A Step Toward More Inclusive Sourcing
This review could lead to more flexible sourcing rules, making it easier for a broader range of manufacturers—including startups and mid-sized enterprises—to compete for public contracts. The goal is to refine the PPP-MII framework so it better aligns with on-the-ground realities while continuing to promote Make in India objectives.
By actively seeking industry input, the DoT is signalling its commitment to creating a procurement policy that not only encourages domestic manufacturing but also acknowledges the current limitations of India’s telecom production landscape.
