Modi Govt Mulls Relaxing Make-in-India Rules for Electronics & Telecom Sector

Narendra Modi-led central government is considering a significant shift in its local content policy for electronics and telecom products, potentially lowering the threshold required to qualify as a “Class-I” local supplier under the Public Procurement (Preference to Make in India) Order (PPP-MII). This move is being driven by challenges in achieving 50–60% local content due to India’s limited component.

Multinational corporations like Cisco and Ericsson have been lobbying for these changes, arguing that key components such as semiconductors and PCBs are not readily available from Indian suppliers. They’re pushing for design and software work done in India to count more heavily toward local content—even if the intellectual property remains foreign-owned.

Critics, including the Global Trade Research Initiative (GTRI), warn that this could reduce India to a low-value assembly hub, discourage indigenous R&D, and disadvantage domestic firms like Tejas Networks and HFCL that have invested in local manufacturing and IP creation.

The Department of Telecommunications (DoT) has opened a public consultation on the proposed changes, inviting feedback until early July.