India’s smart device manufacturers are facing important challenges in preparing their products for exports due to the ban on importing and embedding foreign SIM cards during the manufacturing process. Typically, SIM cards including eSIMs are installed in devices such as connected cars, GPS trackers and other smart gadgets, which are in the factory phase to ensure quick connectivity in foreign markets. However, current rules prohibit the import of foreign sims for use in equipment, forcing manufacturers to either collect and install SIM cards abroad, which combines logistics cost and operational complexity, or to use Indian SIM cards in export-bombing equipment with international roaming, a solution that is both incapable and expensive.
In response, telecom operators and industry associations have approached the Telecom Regulatory Authority (TRAI) with a proposal for a dedicated license, which is valid for at least ten years, which will allow licensed telecom operators and registered Machine-to-Machine (M2M) service providers to be allowed to test and install specially to foreign SIM or embedded SIM cards. The proposal also includes strict compliance measures, such as limiting eligibility for companies having integrated telecom licenses, ensuring traceability, and following KYC criteria to prevent misuse in the domestic market.
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Advocates of the policy change argue that a more flexible and transparent approach to SIM imports will streamline low production costs, and will actually export Indian products, as well as create new revenue opportunities for telecom operators and increase a sufficient increase in technology exports. Currently, the only foreign SIM card permissible under Indian rules means individual use, such as global calling cards or international roaming SIMs, which require a No-Objection Certificate (NOC) issued by the government and no practical benefit for large-scale construction. The push for improvement aligns itself with the position as a global leader in smart device exports with the great ambition of India, supported by regulatory clarity, operational efficiency and a competitive edge in the connected technology markets.
