Policy U-turn? New govt notice hints at easier local sourcing rules for telecom equipment makers

A government notice last week hinting at a possible flip-flop in India's local sourcing policy for telecom equipment has left domestic manufacturers such as Tata Group's Tejas Networks Ltd fretting about losing ground to global companies like Nokia and Ericsson. Under current rules, telecom equipment manufacturers must source 50-60% of their total bill of materials locally to be selected as Class-I local suppliers—the preferred bidder category—in tenders floated by public sector undertakings and ministries for certain products. However, in a notice dated 3 June, the Department of Telecommunications said India's limited components ecosystem posed challenges in achieving 50-60% local sourcing…